Best execution is currently a hot topic for global regulators and the past year has seen notable regulatory focus in this area. Amid this development, firms are recommended to review their global best execution compliance practices.

During the past year, best execution has become a topical issue globally as regulators in different jurisdictions have highlighted best execution as a significant area of focus. In particular, the Hong Kong Securities and Futures Commission (SFC) concluded its thematic review on best execution and published its report in January 2018, the Monetary Authority of Singapore (MAS) issued a consultation paper on best execution in November 2017, and the United Kingdom Financial Conduct Authority (FCA) announced in March 2017 that best execution remains an issue following the regulator’s thematic review on the asset management industry. Against this backdrop, the revised Markets in Financial Instruments Directive (MiFID II), which came into effect in January 2018, has also built on the best execution requirements under MiFID I.