MiFID II: One Year On

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.

Our findings show that asset managers are overwhelmingly absorbing research costs against their profit and loss and scaling back research budgets accordingly. The decline in research budgets increases with the size of the firm, and larger asset managers are more likely and able to move research production in-house as they scale back reliance on external providers.

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