
FCA: TCA ‘unlikely’ to fall under research
Third-party transaction cost analysis fees will be difficult to include in the spread if they do not count as research costs

The payment of third-party transaction cost analysis services is likely to be shouldered by asset managers, rather than passed on to clients, because the UK’s Financial Conduct Authority says such fees are unlikely to qualify as research costs.
Last month, an article in FX Week highlighted that several asset managers currently pay for external, third-party TCA services as part of the spread, which means the TCA fee becomes a component of the overall cost of execution, which can then be charged
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