ENERCOM FOCUS
The implementation of MiFID II in January of 2018 sounded the bells on significant changes for the equity research industry. The European regulation ended the long-standing arrangement of research being provided for free to the buyside with the expectations that trades would be channeled to the sellside firms providing the reports. Under MiFID II, asset managers would need to pay for research, “unbundling� it from trading fees.
Market in Financial Instrument Investment The decision was taken as part of a push to offer greater transparency into the cost of both research and trading commissions. The regulation went into effect in the European Union, but because of the global scope of asset management, many buyside firms made the decision to come into compliance with the European regulation to avoid conflicts elsewhere in the world.
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