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Banks must avoid price wars on research ahead of Mifid II

It is not in asset managers' interests to push investment research costs down too low

Banks will hope to avoid becoming embroiled in a price war on equity research
Banks will hope to avoid becoming embroiled in a price war on equity research Photo: iStockphoto

The impending arrival of Mifid II in January has caused turmoil in the investment research industry already. Much more is to follow, and it will be even worse if these changes set off a price war, with aggressive pricing in the new market being created.

Many expect a price war to happen sooner or later, given that financial institutions will have to split, or unbundle their commissions into an execution fee and a research fee.

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