The unbundling of investment research is one
area that is proving a headache for both the industry and
regulators, in particular when it comes to
With just weeks to go until the new Markets in Financial
Instruments Directive (Mifid II) comes into effect, the debate
around this new legislation has reached fever pitch. Despite
the impending deadline, there is still a lot of uncertainty,
especially concerning the issue of unbundling and how
investment research should be priced and paid for. There has
been a range of pricing options from the sell-side in recent
months, along with industry speculation on how boutique and
mid-tier providers will fare against larger investment banks.
On the buy-side, most asset managers have now said they will
not be passing on the cost of research to clients, but this,
coupled with plummeting prices, has created further ambiguity
around whether low prices which provide a basis...