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FCA review fails to help the little guy

The regulator’s efforts to improve research on IPOs is sensible but smaller investors might struggle to afford it, especially when Mifid II is in place

FCA review fails to help the little guy
Photo: Gary Waters / Ikon Images / Getty Images

If the Financial Conduct Authority really cares about improving the initial public offering market, then today’s consultation paper is not enough.

The FCA rightly points to the inherent conflict of connected research – whereby analysts at syndicate banks can come under pressure to provide favourable views on an issuer.

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