A number of investment trust research providers have unveiled details of the services they will offer for different clients once MiFID II comes into force on 3 January, with the legislation considered a game-changer for the sector.
Under the new rules, sell-side firms need to provide buy-side clients with unbundled costs of trading, separately identifying and charging for execution, research and other advisory services. Buy-side firms must unbundle the cost of research from value or volume of transactions, and agree a research budget to be paid up front, with a price correlated to the quality and value it would provide to end clients. This budget can be done through their own P&L or a research payment account (RPA), supported by a commission sharing agreement (CSA), which establishes how costs are split into exe...
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