Independent research is struggling to become established among UK fund managers, despite bold predictions for its future following the scandals at investment banks' research departments. A survey of 100 institutional investors by Financial News in association with Instinet found that only one in three fund managers uses independent research.

On the face of it, this would suggest that concerns about the conflicts of interest in investment banks' research departments have receded. Rusty Ashman, chairman of the UK's Association of Independent Research Providers and director of Stockcube Research, said: "After the fright of the investigations by Eliot Spitzer in the US, investment banks put up Chinese walls and tried to cut the links between corporate finance and analysis. If it works, there is every reason to have their research and analysis rather than independent research and analysis."