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By Nathan François, Analyst Alpha FMC
It has been over a year since the European Commission started publishing its long-awaited MiFID II delegated acts, which aimed to provide more detailed guidance to market participants on the interpretation of ESMA’s final report on the Directive 2014/65/EU (also known as MiFID II).
One of the most prominent hot topics stemming from the delegated acts requires investment firms to separate execution and research fees, breaking the current bundled model. ESMA’s reasoning was that conflicts of interests are too great under the current bundled research payment model, with research services being considered as potential inducements to trade. Other issues cited by ESMA were the general lack of transparency on research...
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