Asset managers set for MiFID II research price 'shock'

According to co-founder of Electronic Research Interchange

Chris Turnbull, co-founder of independent research provider Electronic Research Interchange (ERIC), has warned asset managers will face a "shock" at the end of Q1, when they "discover they owe more for research than they anticipated", following the introduction of MiFID II at the start of 2018.

MiFID II, which came into force on 3 January, requires the cost of research to be unbundled from other services sold by brokers, in order to provide investors with a transparent breakdown of fees. The provision of free research from sell-side firms is no longer permitted, as this would constitute an inducement to trade. Call for FCA to act now on MiFID II 'peppercorn pricing' As a result, asset managers have had to reconsider what research they receive and be more selective of the research they pay for. Turnbull said asset managers' pre-2018 approach to the new requirements of doin...