Barclays prices unbundled research at up to £350k

Pricing plan reveals huge potential costs of buying research under MiFID II.

Asset managers could find themselves paying up to £350,000 a year for research from Barclays under MiFID II.

The bank is the first to reveal its plans for unbundling of execution and research costs, with its full suite of analyst research costing £350,000.

In a letter seen by Bloomberg, Barclays has put forward three tiers of research, with its gold offering providing all reports and some analyst meetings. It cheapest deal is thought to cost £30,000.

Currently, most asset managers do not pay for research directly, instead receiving a wide range of analyst reports and paying for it via either execution commissions or through a commission sharing agreement.

MiFID II will force firms to unbundle, meaning investment banks must price their research offerings. However, this is the first time an investment bank has put a hard dollar price on its whole research product.

Other banks are thought to be working on pricing ahead of the MiFID II deadline at the beginning of 2018, but a wide variety of different price points are expected depending on the size of the analyst team, stock coverage and the number of reports required.

Over the weekend, it was revealed that Deutsche Asset Management has created its own internal research division to help it keep more control of its research costs once MiFID II is introduced.

Deutsche’s research division will help fund managers identify investment opportunities and provide clients with regular analysis on macro-economic developments.

It is understood that Stuart Kirk, former head of Deutsche Bank’s thematic research, has moved to the asset management division to head up the research institute.