Third of firms yet to decide how to pay for research, poll finds

broker research surveyA third of asset management firms have yet to decide how they will pay for broker research once MiFID II rules come into force in January next year, according to a survey.

The findings, released by RSRCHXchange, tally closely with the findings of a similar survey published yesterday by the Alternative Investment Management Association which also looked at the state of readiness within the industry to comply with MiFID II’s research unbundling rules.

The fresh survey, which polled 562 asset managers representing 450 buy-side firms, also found that:

  • 54% of firms do not think they have enough information on research unbundling;
  • 85% of asset managers expect to fully comply with MiFID II by the fourth quarter of 2018, some nine months after the rules come into force;
  • Only 2% of respondents are unaware of the upcoming unbundling rules;
  • Over 60% of respondents have already set or begun to set their research budgets;
  • 77% of respondents expect the number of research providers to fall.

Jeremy Davies, RSRCHXchange co-founder, said: “As we rapidly approach the MiFID II deadline, it is clear that decisions are being made and the largest asset management firms are the most advanced in the process as they transition towards compliance.

“The onus of setting a price for research rests firmly with providers but, as of now, this process is not yet well advanced.”

The survey was carried out by polling company Survation over the last three months.

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