Best Execution in Asia.
Best execution is likely to continue to be a hot topic during 2018 with the implementation of MiFID II in Europe affecting financial firms globally and the UK FCA have completed a review in 2017 of best execution in asset management where it identified a number of ongoing deficiencies.
The MAS consultation on best execution closed in December 2017 so the industry can expect the new Notice and Guidelines to come into effect sometime in the first half of this year.
The SFC in Hong Kong set out its expectations in relation to best execution in a circular in September 2017 where it too identified a number of weaknesses in the Hong Kong market. The SFC also addressed broker voting and evaluation in this circular. The revised Fund Manager Code of Conduct and the Code of Conduct both provide the basis for the SFC to require firms to have a best execution policy.
If you are in Asia and have not yet implemented a full research, broker voting and best execution policy it is something that you need to address early in 2018.
ComplianceAsia can assist you with best execution governance, policies and procedures, testing and controls.
Contact us at ComplianceAsia for more information on how we can help you be compliant with these important requirements.