A NEW REGULATORY ENVIRONMENT
The most significant regulatory change in the financial markets since the Big Bang, MiFID II is the EU’s post-crisis response to financial regulation – an update and extension of MiFID I. It will rewrite the operating model of how asset managers pay for broker research.
Peel Hunt’s response
We have a proactive and positive approach to regulation, and a robust enterprise-wide risk management framework in place.
We have a firm-wide MiFID II team, comprising 10% of our total staff.
Focus on what matters
We're focused on key regulatory themes affecting us and our clients: Research Payment Accounts, transaction reporting and new procedures.
Leading the debate
We're at the forefront of deliberations with UK and European regulators setting the policy.
Peel Hunt research is ranked 1st with the largest fund managers in the UK and Continental Europe
We understand the shifts in the broking landscape MiFID II will cause.
New payment structures
An increased scrutiny on and reduction of asset managers’ research budgets, and payment from their own P&L unless a budget is agreed with end clients.
Following MiFID II, asset managers will set up “broker panels” for sourcing research. There will be more scrutiny on brokers – only the most relevant will survive.
Fewer brokers engaged
MiFID II could lead to a decline in global research spend of up to 30% by 2020, and have a huge impact on fund firms’ profits.
Fewer analysts spoken to
Research suggests that most firms would speak to fewer analysts per sector than at present.