Financial Times: FCA attacked by research houses over Mifid II reforms

Third Bridge co-founder Joshua Maxey comments the FCA has not done enough to combat 'peppercorn pricing' by large investment banks in the wake of Mifid II, in an article by the Financial Times.

“I would encourage the FCA to further scrutinise the so-called ‘peppercorn pricing’ many larger sellside houses are deploying, where they are charging nominal fees for research and dumping the costs in other services,” said Mr Maxey. “This is putting unequal pressure on the independent research firms who cannot compete with those economics, and in turn is reducing the overall quality of research available to investors.”

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