What's the Industry Standard for Managing Research Payments?

Q3 2017 saw something of a sea change in the stated approach of how leading global asset managers intend to manage research payments under the new regulations. The number of global firms that have publicly outlined their plans to pay for external research costs out of P&L suggests the emergence of a new industry standard. This will have important repercussions for how the whole industry manages research payments and also how the pricing of research and corporate access evolves.

Topics covered in this article:

• The two main approaches taken for managing research payments.
• The marketing argument for asset managers incurring the cost of research.
• The implications of paying for research out of P&L on the future pricing of research services.