Best Execution Importance, FCA’s Quest for Transparency and How to Get There

The FCA, the chief financial regulator in the UK, recently highlighted that investment managers have not been particularly engaged with assuring best Execution for their clients. With the upcoming changes to the financial regulatory framework since the beginning of 2018 and the introduction of MiFID II, companies are expected to focus more effort on the matter.

Best execution monitoring is one of the key sections of MiFID II. Companies are obligated to check the fairness of prices proposed to clients when executing orders or taking decisions to deal in OTC products.

According to the FCA, some firms have been addressing the issue and are showing 'good practice', however the bulk of the industry is trailing behind.