July 10 (Reuters) - Financial Conduct Authority:
* Review of how firms use dealing commission - charges paid by consumers for executing trades and external research, worth around 3 billion pounds a year
* It found too few firms properly assess value-added and cost of research paid for using client dealing commission.
* Also found practice of brokers bundling execution and research services makes it harder for investment managers to assess value of research
* Has announced its support for proposed European reforms to further separate research from dealing commission, to encourage greater competition and more transparency over price of research.
* Will work closely with industry and other regulators to ensure that new european rules deliver best outcome for investors.
* Review of 17 investment managers and 13 brokers found only two investment managers operating at level we expect Source text: (bit.ly/1jsRQgD) Further company coverage: [ ]