The survey findings presented in this report portray several drawbacks with the MiFID II regime for investment research. The findings suggest a competitive tilt favouring large firms as research budgets and profit margins come under pressure from client demands, increased competition, and business model disruption.
In the months leading up to the introduction of MiFID II in January 2018, industry professionals observed a general trend toward firms opting to pay for research (charged against the firm’s profit and loss) as opposed to charging clients. This observation was corroborated in our 2017 survey data. One year on, these survey results affirm that trend. The clear majority of respondent’s firms pay for research, which holds true across all size categories in terms of assets under management.
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