IMA Comments on ESMA’s MiFID II consultation – the use of dealing commissions in payment for research

“The particular conflicts that are a source of concern to ESMA are dealt with comprehensively in the UK by commission sharing arrangements, the increased use of budgeting and governance over the analyst vote.

“The single most effective move that regulators could make to improve governance around the cost of research would be to require the supply of research to be unbundled and a clear price shown for specific services. It would then be possible for asset managers to assess the value of research to beneficiaries and to manage a more efficient and focused process.”