We are pleased to members of Euro IRP – the association which represents independent research providers. MiFID was meant to unbundle research and make its costs transparent. This should have been an opportunity for independent providers, such as ourselves, to compete with the ‘big buys’. We are confident that the buy side wants value and results from the research it now has to pay for. Unfortunately, the response of the sell-side is to more or less give its research away. How they will be able to retain their large and expensive research departments is not clear. But this has been the response in the equities field.
Following the Special Meeting (28 February) on the impact of MiFID II, where Euri IRP secured both the FCA and the AMF as observers, and the clear concerns expressed from members around predatory pricing by the banks, and the ‘trials trap’ that IRPs are caught in, we have generated media coverage with the Financial Times, Integrity Research, and other media in UK and continental Europe. Chris Deavin, Euro IRP Chairman is extensively quoted in these articles. Please message me if you would like to see the articles.
Euro IRP is deeply committed to their mission statement to raise the profile of the association, and get the IRP voice heard and recognised by the regulators. We continue to do this, with meetings with ESMA and BaFin already held or in the pipeline, and we will use the upcoming 2018 members’ study to reinforce their messages – to buy-side clients, regulators and the media.
This is important work unless we want one of MiFID II’s objectives to backfire to the detriment of the clients and eventually, the public.