'Potential disaster' as City risks losing US research, warns Hermes' Murray

Less than 100 days until MiFID II deadline

Hermes' head of investment Eoin Murray has cautioned that UK-based buy-side firms could be left without access to key research sources in January 2018 if a solution to the clash between incoming MiFID II rules and international regulations is not reached soon.

Murray said that with less than 100 days until MiFID II implementation, regulators have yet to provide answers to how firms will access research from countries where the sale of research is prohibited, such as the US, when the European legislation specifically forbids sell-side firms to provide 'free research'. AllianzGI's Macdonald: MiFID II could accelerate asset management M&A He said: "There is still a huge problem, particularly with regards to the US and Japan, but also in other global markets, that it is illegal to pay for your research. "The FCA is desperately scrabbling aro...