MiFID II unbundling – what price, research?

FCA CEO Andrew Bailey has declared that MiFID II unbundling of research costs from trading services is having a “positive impact” – but he admitted there were “winners and losers” from the reforms, reports Esther Martin.

Speaking to the European Association of Independent Research Providers in February, Mr Bailey said that a multi-firm review had found “research budgets have reduced by around 20-30 per cent”. This equates to around £180 million saved by investors in equity portfolios managed in the United Kingdom during 2018 – and over the next five years they are likely to benefit by nearly a billion pounds.