FCA writes to CEOs on PFOF

FCA has written a Dear CEO letter, expressing its concerns on the continued practice of “payment for order flow”. Despite FCA having criticised the practice in the past, it is aware that many brokers are still doing it, and are devising strategies to get round the even stricter MiFID 2 restrictions. FCA warns firms that it will look hard at these arrangements and encourages market makers approached by firms with proposals that look to circumvent the requirements to tell FCA of the attempt.