Emmanuel Tahar (pictured), CEO of primary research partner Third Bridge, comments on the European Commission delaying the Mifid II deadline…
The Mifid II directive is set to clamp down on trading commission bundling that often results in investors' research spend being misappropriated; spent by the buy side without a clear demonstration of the ROI it offers. This bundling is unfair to institutional investors, who see their money spent on sell side equity analyst research that is largely biased and rarely of much use. While some firms are putting stronger mechanisms in place knowing that the European Commission roll-out is coming, it’s a shame to see the enforcement deadline pushed back until 2018.
The buy side needs to be held accountable for how research money is being spent, so we look forward to having a clear guideline framework in place that mandates what you can and cannot pay for using dealing commissions
