Article: Research ‘unbundling’ under MiFID06 April 2017 | Robin Poynder
The effects of MiFID on the financial markets will be profound and impact almost all aspects of how the markets are managed. The distribution and consumption of research is no exception to this, with the new framework that is being finalised under investor protection causing many sleepless nights to those firms who are attempting to interpret this into pragmatic infrastructure. This directly affects banks as research producers, and asset managers or pension funds as research consumers.
Complying with the MiFID regime will be the only way in which firms providing portfolio management or independent investment advice can receive third party research, unless the research is of “minor non-monetary benefit”. Given that the investor protection frameworks sit within the directive, EU countries will each transpose the framework into local law; with all the complications that