Chris Turnbull, co-founder of Electronic Research Interchange (ERIC), comments:
“Today’s news that Jupiter will join the likes of Woodford, Baillie Gifford and M&G in taking research costs onto their own P&L underlines the impact of MiFID II, and emphasises the wholesale changes coming to the buying and selling of research.
Relationships between the buy side, the sell side, and analysts will be deeply affected under the new regulatory regime, and the largest asset managers are already responding by re-evaluating their research consumption. On this basis, it does seem clear that the adoption of alternative models for accessing research will become the norm. While we believe that investment banks will continue to provide valuable, quality research, it looks likely that new procurement and distribution strategies, such as open and transparent trading platforms, will continue to gain traction in the months leading up to January 2018”.