Bundled research/execution represents a conflict of interest between fund managers and investors

BestEx Asia Ltd

BestEx Asia Ltd

Bundled research/execution represents a conflict of interest between fund managers and investors. Using brokerage incurred on trade execution to pay brokers for ideas is often not acting in the best interests of investors, particularly when a substantially better price could be obtained by trading the same parcel with another broker or on an alternative trading venue. There is no reason for a fund to pay 20% more for the same volume of research, simply because the market is up 20% yoy. Good to see UK regulator pushing radical reform on this front. Time for ASIC to follow suit. Transparency and accountability needed in terms of the way Australian fund managers allocate the brokerage they incur on behalf of underlying investors. (VIEW LINK) (VIEW LINK)


BestEx Asia Ltd
BestEx Asia Ltd
Contributor
BestEx Asia Ltd

BestEx is an innovative, broker neutral, buy-side dealing desk that enables investment managers to achieve best execution in multi-market environments.\r\n\r\nWe use technology to source liquidity and execute orders with the best possible outcomes...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.