BUYING EQUITY RESEARCH
After months of intense consultation and lobbying, ESMA (the European Securities and Markets Authority) has announced its capital market reforms in a 1,500 page document. But the question of how to finance investment research remains pending. The rumor is that clarity will finally come this November (2015).
A few things are nevertheless certain to change:
- Research payment can no longer be linked to execution volume
- Investment managers must set their research budgets in advance
- Research must be (and has already started to be) priced
- Buyers must establish in writing their procurement rules, especially concerning the value research brings to their investment process.
Our infographic below recaps the journey up to this point and will help you pencil in the key dates to come.