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EU takes hard line on soft research spend

Mifid II will force a long-awaited split between research and execution fees and is set to radically overhaul the research industry

EU takes hard line on soft research spend

The clock has finally started ticking on changes to one of the most controversial topics in European equity trading: the use of share-dealing commissions to pay for research.

It is a big question. The Financial Conduct Authority estimated last year that UK fund managers alone spend £3 billion annually on dealing commissions, around half of which funded the army of analysts who slap buy, sell or hold on company stock.

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