FCA's Bailey: MiFID II to save investors £1bn

Concerns about pricing, liquidity and research coverage

Chief executive of the Financial Conduct Authority (FCA) Andrew Bailey has claimed MIFID II will save investors £1bn over the next five years as a result of firms slashing their research budgets.

MiFID II, which came into effect in January 2018, requires asset managers to pay for research separately from other broker services. '10% rule' revamp and disclosure harmonisation: Industry eyes key areas for 'MiFID III' overhaul The result has been the vast majority of asset managers deciding to pay for research out of their own revenues, rather than continuing to pass the costs of research onto end investors. In a speech delivered yesterday (25 February), Bailey describe the shift as "well beyond our expectations in the summer of 2017". It has seen firms' research budgets "red...