The unbundling of fees prompted by MiFID II requirements has prompted questions over whether investment banks should ditch equity research. In a report published in July, the Bank for International Settlements (BIS) said that “some firms are still using their own research to provide advice on how best to invest clients’ money”. It's also been suggested that the more exclusive the research, the less necessary second-tier advice becomes.
The unbundling of fees prompted by MiFID II requirements has prompted questions over whether investment banks should ditch equity research. Industry insiders are asking if thriving equity capital markets are truly dependent on in-house analysts following cuts to fixed-income products. It's also been suggested that the more exclusive the research, the less necessary second-tier advice becomes.