Mifid II tipped to accelerate bank research cuts

Sell-side research budgets are looking increasingly vulnerable as Asian asset managers examine how to deal with the potential impact of Europe’s Markets in Financial Instruments Directive II (Mifid II), which comes into effect next January. Estimates for how much an active manager pays for research vary from 25% to 60% of overall dealing costs, and many believe its quantification will lead to sizeable job losses from banks’ research departments. Under Mifid II, funds will be for…