The Financial Conduct Authority (FCA) could be set to crack down on a growing number of brokers attempting to circumvent MiFID II rules by providing research for free to all buy-side firms including asset managers, a senior financial lawyer has said.
Financial regulation counsel at Ropes & Gray John Young said the regulator will be forced to respond to the trend of brokers making their research available to all firms, as MiFID II rules experience "an existential crisis". MiFID II blog: All the latest news and analysis as industry adapts to new regulations MiFID II, which came into force on 3 January, requires buy-side firms to pay for "substantive", value-added research they receive from brokers, otherwise this would amount to an inducement to trade. But "non-substantive material", such as short-term market commentary or the la...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
