Fund managers must be able to prove they are paying an appropriate price for research, the UK’s markets watchdog has warned, amid claims banks are slashing prices to win buyside clients.

A senior executive from the Financial Conduct Authority told around 70 asset managers and brokers at a London conference last week that the regulator thought “the first responsibility is on the buyside” to ensure the price of research does not constitute an inducement under new rules coming into effect next month.