Amundi’s research U-turn is not an option for smaller managers

Chris Turnbull, co-founder of ERIC (Electronic Research Interchange):

“Amundi’s decision to reverse its stance on absorbing research costs is not a template that smaller asset managers will be able to follow.

“While the decision is clearly right for Amundi, firms with less scale may be unable to pay for external research in the same way. Amundi has been bolstered by its recent acquisition of Pioneer Investments and, as a top ten global asset manager, has the resource to run one of the world’s largest in-house research teams. But at the other end of the spectrum, many asset managers are yet to make difficult decisions about how they will consume research under MiFID II.

“The FCA recently indicated that firms that have a problem with MiFID II preparations should contact them at the earliest opportunity. For many asset managers, investment research decisions could fall down their list of priorities at the expense of other urgent compliance tasks, so those struggling to finalise their arrangements should seek advice urgently.”