Citigroup Global Markets is introducing a new distribution system for its corporate fixed income research in the U.K., as part of bringing itself in accordance with proposed Financial Services Authority rules that would subject bond research to similar disclosure rules as equity research. The firm is updating the information it holds on all its fixed income research customers primarily to give them control over the types of research they receive, according to an official at the firm. But, Citi also wants to ensure it has up-to-date records on these customers because of the new regulations, he says. The firm has written to its fixed income research customers asking them to provide up-to-date contact information and to specify how they would like to receive the research, such as by hard copy or e-mail.
The FSA has not finalized how disclosure rules will apply to fixed income research distributed in the U.K.. But, given that some sort of disclosure will be required, it makes sense to ensure customer details are up-to-date in order to be ready for any new rules, explains the official. He declined to reveal more about the new distribution system or say when it might be introduced and spokesmen for the firm did not return calls by press time.