MiFID II Research Unbundling Spreads Uncertainty to the U.S.

MiFID II Research Unbundling Spreads Uncertainty to the U.S.

Eighteen months after MiFID II rules to unbundle research payments from executions have been in force in Europe, U.S. asset managers are dealing with uncertainty around paying for research, but they are waiting for further guidance from the Securities and Exchange Commission.



Many US asset managers are evaluating the need for increased transparency in their own research payment models, but they are waiting for further guidance from the Securities and Exchange Commission (SEC).

The SEC issued three no-action letters in 2017 allowing the sell side to accept a check from European clients without violating U.S. rules. Those no action letters expire in July of 2020

“Clearly a lot of businesses are looking at what’s happening in Europe and asking is it necessary to do this; is it a good idea; do my clients and consultants want me to make that change,”  said a global bank’s sell-side research executive on the MiFID II panel at Tabb Group’s Equities 2019 conference.

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