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MiFID II research rules - what you need to know

Webinar provides practical tips on dealing with biggest shakeup in commission payments industry has ever seen.

By Editorial editors@thetradenews.com July 17, 2017 1:05 PM GMT

Last week, The TRADE and and Red Deer held a webinar looking at practical solutions to the key issues facing the buy-side when implementing MiFID II's research unbundling rules.

MiFID II Research - Countdown to Compliance saw The TRADE's digital editor John Bakie joined by Red Deer's John McCann and Westminster Research Associates' Robin Strong to consider the key challenges facing buy-siders.

Major areas the buy-side must get right in preparation for the new rules being introduced on 3 January 2018 will be valutations & budgeting, research coverage, research payment accounts (RPAs), record maintenance and dealing with unrequested research.

Each buy-side firm will have to set a research budget and evaluate how that research will be paid for. They will also need to figure out exactly how they value research and determine which research offers good value.

New reporting procedures are also required, not just for internal compliance reasons, but to effectively communicate research costs, spend and value to clients as part of MiFID II's transparency push.

The session also took a look at potential solutions for firms who wish to continue using commission sharing agreements (CSAs) and how they can ensure they comply with the new rules, including CSA sweeping to ensure funds are regularly transferred to research providers and that client money is kept safe.

To view a recording of the full webinar, please click HERE.