Paying for research post-MiFID II

MiFID II, which took effect on 3 January, requires payment for research to be an 'unbundled' product, separate from other broker services. As expected, the investment research market is a key focus area for EU regulators following the implementation of MiFID II.
Investment managers need to be able to demonstrate that they have systems and controls to ensure that they are not accepting research or corporate access in breach of the inducements rules. Over time, there may be momentum towards consolidation in the research provider market as investment managers give greater scrutiny to the value of the research they receive. More research may also be conducted by investment managers in-house as the investment process becomes more data-driven.