The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

FCA probe to explore Mifid II impact on research

UK regulator to examine regulatory impact as current research pricing viewed as unsustainable by investors.

The UK’s Financial Conduct Authority (FCA) has launched a review into the application of Mifid II regulations and the unbundling of research costs.

It plans to write to asset managers, investment banks, specialist brokers and independent providers to ask for details about research pricing models, governance and decision-making related to research provision and pricing methodologies.

The review is expected to last six months.

The news comes nearly six months after Mifid II came into effect. The impact on the market is as yet quite unclear, but RSRCHXchange’s latest buy-side survey sheds some light on investor attitudes to the changes.

These are broadly that it is positive for end-investors, negative for research providers and mixed for asset managers.

Seventy-eight per cent of respondents within Europe thought unbundling was bad for brokers, where as 53% felt it was a good thing for investors.

The firm canvassed the views of 418 respondents from more than 30 countries, representing over 350 firms with more than $30 trillion of AUM in aggregate.

Jeremy_Davies-160x186
Jeremy Davies,
RSRCHXchange

“I don’t think that the number of research providers has fallen as much as people expected it to,” Jeremy Davies, co-founder of RSRCHXchange, tells Euromoney.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree