A storm is brewing in the UK-based fund management industry over the recent proposals from the Financial Services Authority (FSA) to change the way sellside research is paid for.

When the UK regulator first unveiled its proposals on bundled brokerage and soft commission last month, they were met with a resounding silence from most quarters. There were concerns expressed at the time by the Investment Management Association, the trade body that represents the buyside in London, but it was all pretty restrained stuff.