Asset Management

Equity research reforms will slash fund managers' profits

Reforms aimed at cleaning up the funding and payment for equity research in Europe could deliver a hit to fund managers' bottom lines of up to 30%, according to S&P Global.

Neil Woodford is among the high-profile fund managers to have decided to shoulder the cost of research
Neil Woodford is among the high-profile fund managers to have decided to shoulder the cost of research

Reforms aimed at cleaning up the funding and payment for equity research in Europe could deliver a hit to fund managers' bottom lines of up to 30%, according to S&P Global.

The reforms are part of a package of measures under the post-crisis revision of the EU's main market infrastructure rulebook - the Markets in Financial Instruments Directive, or Mifid II - that are due to come into force in January 2018.

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