I started out on this series thinking I would ask where investors – private and institutional – will go for good research, given that regulation – particularly Mifid II due to come into force next year – is said to be causing brokers to lay off their analysts. This raises the question: What is good research anyway?
But on reading through the excellent description of the increasingly complex regulation minefield, by 'paid-for' research provider Edison Investment Research ("The Future of Equity Research") and how regulation during the last twenty years has affected its provision and will do even more so, one is struck by how the regulators – starting in the UK with the FSA in 2001 – seem not only to ignore the needs of private investors, but also want to micro-manage even the way professional analysts and fund managers actually do their job.
At base, investment regulation has developed due to the regulators believing that too much cost was being passed on to fund managers' clients – a large reason for which was the freedoms delivered by Big Bang in the 1980s, with a resulting proliferation of the 'sell-side', expensive and often redundant research that banks and brokers were able to charge for via commissions. So the forthcoming Mifid II strictures will extend the rules to ensure that fund managers account transparently to their clients – in frightening detail – for the cost and 'benefit' of the research they rely on to manage their funds.
by Zak Mir| Trading| 1 mins. to read Although it may be said that Infrastrata (LON:INFA) has been something of a Cinderella stock in the recent past, it would appear that the latest developments at the group could signal the start of a lasting turnaround.
by Evil Knievil| Evil Diaries| 2 mins. to read This morning the great RBS (LON:RBS) fund-raising damages action kicks off with the allegedly disgraced one, Fred Goodwin, giving evidence. Goodwin is not my idea of anything other than a jumped up sock salesman
by Zak Mir | Trading | 1 mins. to read Echo Energy (LON:ECHO), formerly Independent Resources, has already been one of the micro cap stocks of the year to date. It would appear from the daily chart configuration that a new leg to the upside should be with us within days.
by Victor Hill | Economics | 12 mins. to read You can tell a political ideology by its tax-and-spend policies. The two far extremes of the English-speaking political world – the new US populist right and the old UK corporatist left – are fashioning very different fiscal programmes.
by Filipe R Costa | Economics | 6 mins. to read Since the beginning of the year, I have been drawing the attention of the reader to the lack of volatility in U.S. markets, as such a high level of complacency is extreme by historical standards and is not supported by current fundamentals.
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