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Client’s best interest rule: Difference between revisions
Client’s best interest rule (view source)
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[[File:TCB.jpg|450px|thumb|center|Taking care of business — I mean treating customers fairly — in Memphis Tennessee]] | [[File:TCB.jpg|450px|thumb|center|Taking care of business — I mean treating customers fairly — in Memphis Tennessee]] | ||
{{subtable|{{COBS Section 2.1}}}}}} | {{subtable|{{COBS Section 2.1}}}}}} | ||
''See also: European “[[FRANDT]] | ''See also: European “[[FRANDT]]” regulations requiring [[clearing member]]s to be [[fair, reasonable, non-discriminatory and transparent]] in their dealings with clearing clients, which at first blush seem to qualify some of the bracingly spartan arguments below but, on closer inspection, don’t really.'' <br> | ||
The [[FCA]]’s much-talked-about, seldom understood, [[TCF]] provision. To be read in conjunction with the FCA’s “PRIN” general principles and, for those of you, my pretties, who like to dive ''deeper'', the [https://www.fca.org.uk/publication/feedback/fs19-02.pdf FCA’s discussion paper on conflicts of interest] published in April 2019. | The [[FCA]]’s much-talked-about, seldom understood, [[TCF]] provision. To be read in conjunction with the FCA’s “PRIN” general principles and, for those of you, my pretties, who like to dive ''deeper'', the [https://www.fca.org.uk/publication/feedback/fs19-02.pdf FCA’s discussion paper on conflicts of interest] published in April 2019. | ||
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It is true, Principle 8 extends to conflicts ''between different clients'' as well as between [[dealer]] and [[client]]. But surely these conflicts must arise as a result of some kind of direct interaction between the two clients, rather than the abstract fact that both of them happen to be on the demand side of the same resource for which there is limited supply. Again, regulatory rules here — [[best execution]] — are about the price at which you do trade, if you trade, and not whether you trade at all, and the conflict is between dealer and client and not between the clients. | It is true, Principle 8 extends to conflicts ''between different clients'' as well as between [[dealer]] and [[client]]. But surely these conflicts must arise as a result of some kind of direct interaction between the two clients, rather than the abstract fact that both of them happen to be on the demand side of the same resource for which there is limited supply. Again, regulatory rules here — [[best execution]] — are about the price at which you do trade, if you trade, and not whether you trade at all, and the conflict is between dealer and client and not between the clients. | ||
{{sa}} | |||
*[[FRANDT]] | |||
{{ref}} | {{ref}} | ||