MOST Hong Kong fund managers are in favour of banning commission rebates and regulating soft dollar commissions.
Almost two thirds (64.7 per cent) of Hong Kong Investment Funds Association (HKIFA) members, who responded to a survey by the body, expressed approval of Securities and Futures Commission (SFC) proposals to ban the controversial practice of accepting cash rebates on share deal commissions from brokers.
And 91.2 per cent said so-called soft dollar deals should be allowed only if the goods received benefited clients, that the best terms were satisfied and adequate disclosure was made.
The issue of banning commission rebates has caused a bitter split in the HKIFA with a public slanging match erupting between two of Hong Kong's biggest fund managers - Jardine Fleming and Fidelity - who are on opposite sides of the rebate divide.
The HKIFA survey has come as a blow to supporters of rebates. The survey will be handed to the SFC and will add ammunition to the regulator's campaign to have rebates outlawed.
The survey was conducted after Business Post attempted to survey HKIFA members and Richard Haw, chairman of the body, wrote to members urging them not to reply because reponses might have highlighted conflicts or divided opinion on the subject.