We are almost two months on from MiFID II 'D-day' and still far from solving the complexities surrounding the unbundling of research payments, writes Nick Burchett, head of UK equities at Cavendish Asset Management.
Take for example a recent interaction between Jefferies and Purplebricks which neatly highlights a point of uncertainty regarding inducements. Jefferies put out a damning sell note on Purplebricks, causing its share price to fall. Purplebricks felt compelled to put out an unscheduled trading update in response, specifically mentioning the Jefferies note and contesting its contents with its own figures. Under MiFID II's unbundling of research, only those who specifically paid for Jefferies' note should have had access to it. MiFID II blog: All the latest news and analysis as industr...
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