MiFID II Reversal Sparks Shift to CSA-Funded Research in Europe
European asset managers are overwhelmingly retreating from MiFID II's research unbundling rules, with 87% of firms expecting client-funded research budgets to dominate within two years. The FCA's July 2024 rule changes—allowing cost passthrough to end investors—have catalyzed this reversal, though pooled fund inclusion remains contentious.
Regulatory divergence is narrowing, with 83% of surveyed institutions seeing the FCA's joint payments framework as a bridge for US/EU/UK alignment—a stark increase from 45% in prior assessments. Substantive Research's latest data reveals fund-level budgeting requirements could derail progress unless harmonized with COBS2 provisions.