The days of investment research as we know it could be over
if recent developments in the market are looked at more
The new Markets in Financial Instruments Directive (Mifid
II) aims to democratise the research process by separating this
provision from the execution of a transaction: put simply, this
means payment for research cannot be linked in value or in
volume to the placing of a trade.
The separation of the research from the trade execution is a
drastic move for an industry that has historically relied on
seemingly free and abundant investment reports as revenue from
the trade was used to fund the research.
What future for investment research?Both fund managers and
research providers have felt the consequences of this
unbundling, not least because the new rules mandate more
transparency on how research is priced, what it covers and who
exactly is paying for it. ...