The poll of 365 CFA members from across Europe found that 78% expected to source less research from investment banks, while 44% said they would beef up their internal research capabilities.
Rhodri Preece, head of capital markets policy for EMEA at the CFA Institute and author of the report, said the organisation supported the aims of MiFID II but warned “the rules are not a panacea”.
“Some respondents were concerned about unintended consequences, including a decrease in the availability of research and a reduction in research coverage,” Preece added.
MiFID II requires asset managers to unbundle the cost of investment research from that of trading securities, which in turn requires an explicit price for research to be set. So far the vast majority of managers have decided to absorb research costs onto their balance sheets, with just Fidelity and Amundi among Europe’s biggest providers currently planning to pass the cost on to clients.
Overall, 53% of respondents expected their employers to foot the research bill, with 15% expecting them to pass it on to clients. One in five were unsure and 12% expected a mixed attribution of costs.
The CFA added: “Respondents raised concerns over a possible competitive disadvantage for smaller firms, echoing industry fears that the changes could result in the loss of some small businesses and further industry consolidation in favour of major global organisations.”
Full news
© IPE International Publishers Ltd.
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article