MiFID II research unbundling:
how will you access investment research going forward?
Financial Services - connected?
Unbundling of research and execution fees is set to transform the entire wealth and asset management industries. Both sell and buy-side firms will have to make smart choices to gain a competitive edge in a world of increased pressure on costs and margins.
Firms who have been hoping for a further delay of the overhauled Markets in Financial Instrument Directive (MiFID II) are left disappointed. The recent publication of the Luxembourg draft law No.7157 implementing MiFID II underscores the need for a pragmatic implementation approach to meet the end of year deadline. Often overlooked are the rules related to research. Buy-side firms must demonstrate, either by paying research themselves or by funding the payment via a client fee, that they have not been induced to use specific brokers.