Sell-side: Mifid II research pricing and trial traps are still grey areas

Author: Amélie Labbé | Published: 20 Dec 2018

Buy-side firms continue to struggle with a number of unanswered questions that were raised when changes to investment research models under Mifid II came into effect in January 2018. 

Two key areas where questions remain are pricing of and access to research, with market participants unsure on a number of points nearly one year after the rules were first introduced. Under the new research unbundling model, asset managers have to keep the cost of research separate from those associated with transactions though how new rules should be implemented in practice is still a work in progress.But the Financial Conduct Authority (FCA) has announced a review of research pricing due by mid-2019 – the regulator raised concerns about how some firms have interpreted and applied the landmark regulation. The head of its French counterpart has also called for rules to be reviewed because of Brexit. One effect of research unbundling has been...