Schroders is preparing to follow BlackRock in ceasing to take “box profits” from its clients, a practice that is being investigated by the UK’s financial watchdog as part of its detailed review of the asset management sector.

Its move has not been finalised, but a person familiar with Schroders said it is likely to stop the practice in the near future. BlackRock made the move on June 1, as part of a review of pricing mechanisms.