Morningstar: How to choose an equity research provider under MiFID II

Which characteristics should groups look out for?

As the MiFID II deadline looms, Morningstar's Sashka Simic, product manager in research distribution, takes a look at what fund groups and advisory firms should be looking for in an equity research provider, while also ensuring costs are transparent and easy to monitor.

One of the new investor protections required by the MiFID II directive is the ban on inducements, which means firms must now pay for any investment research they receive. Not only will asset managers, advisory firms and private banks need to decide how they will budget for this research, they will need to hire research providers in time to prevent service gaps when the directive takes effect in January 2018. And depending on how they account for these new fees, firms may need to establish systems for keeping them transparent. FCA unveils final rules for MiFID II implementation; Confir...