For all client types the FCA compared the fees paid for different types of DCM transactions of different maturities where all, none or some of the bank had a pre-existing relationship with the client for all client types jointly. The results are set out in Table 19.
The analysis suggests that:
Clients without a pre-existing relationship may pay higher fees for corporate high-yield transactions than clients with a pre-existing relationship with all or some banks in active roles. (For corporate high yield transactions of short duration fees paid by clients without a pre-existing relationship and with a preexisting relationship with some of the banks in active roles appear to be the same). Yet statistically the fees paid by the three groups of clients are not different. We noted the rather low number of corporate high-yield issues of long maturity.
Fees charged tend to be higher for corporate investment grade transactions where clients have a pre-existing relationship than for those without such a relationship, in particular for investment grade bonds with long maturity. For investment grade bonds with short maturity this is only apparent considering differences in the means. Yet the statistical comparison of the ranking of fees between the groups suggests that these are different for clients in the three groups.