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A specific concern is that some asset managers stretch the definition of research and use client commissions to cover non-eligible costs and services, Martin Wheatley, chief executive of the Financial Conduct Authority (FCA), told the watchdog's annual asset management conference.
Wheatley will consult with asset managers from November to see what changes are needed to rules on research that have been in place since 2006, or just before the 2007-2009 financial crisis put emphasis on transparency in financial services.
Mutual funds are regulated under European Union rules and Wheatley said he would include policymakers from the bloc in the consultation in order to have a pan-EU approach. The review be accompanied by a separate look of conflicts of interest generally in the asset management sector.