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doubt firms will be dissecting it to understand the operational impact of each element.”
Getting the toothpaste back in the tube Though this update has been widely understood as an opportunity to advance things in the research space, the reality is that in many instances it is looking as though a key challenge will be convincing some firms to go back on their current set ups.
When it comes to the asset management side, a recent report from Substantive Research found that the buy-side are falling into one of three categories – a core of potential early adopters, a large‘ wait and see’ group and an entrenched group of sceptics.
In light of the final rules, the potential early-adopter group doubled, while the group of managers who were neutral and‘ waiting to see’ grew also – though to a lesser degree.
Notably, just 9.6 % fell into the‘ not interested in moving’ pack, regarding the unbundling rollback as“ an unwelcome distraction, now that they finally have their post-Mifid II processes in place and working well,” according to Substantive.
Speaking to The TRADE in June, Carrodus explained: " The
“ The initial group of smaller firms moving fast towards CSAs in the UK are apparently encountering very little push back from end investor clients.”
MIKE CARRODUS, CHIEF EXECUTIVE OF SUBSTANTIVE RESEARCH
initial group of smaller firms moving fast towards CSAs in the UK are apparently encountering very little push back from end investor clients. Whether that ' s a signal for the larger firms to have greater comfort levels concerning their ability to follow suit is by no means certain.
“ However, it does suggest that this will gradually become a European industry trend, especially once the EU regulations are implemented at a domestic level in June 2026."
Speaking to the need to embrace the change, Quick affirms:“ Joint payments should actually be a net positive for dealing desks if they embrace it but they ' re definitely going to have to change the way they approach things.”
Importantly, changes made by the FCA in the final rules reportedly eliminated some deal breakers for the more engaged firms keen to proceed – removing key operational barriers which were hampering the potential take-up of greater flexibility in research funding.
32 // TheTRADE // Q2 2025