The investment research industry will be profoundly affected by sweeping reforms that are ongoing in the EU in the form of MiFID II. Under the new regime, asset managers will need to fund external research from their own profit and loss account (P&L) or through research payment accounts with clear audit trails. While implementation is for 2018, fund managers are already starting to adjust their business models.
Regulatory change has had a significant impact in the shaping of the equity research ecosystem. This paper explores six potential long-term changes the industry may see as a result of the regulatory changes being proposed.