Edison Investment Research Position on MiFID II With the 3...

Edison Investment Research Position on MiFID II
With the 3 January 2018 MiFID II implementation deadline approaching rapidly, Edison is setting out how its content
and services fit within the MiFID II framework.
Broadly speaking, based on the MiFID II rules, research content and services received by asset managers can be
categorised into three groupings:
1. Substantive research. Research that provides a substantive opinion as to the present or future value of
a financial instrument can currently only be received by an asset manager if paid for either from its own
P&L or through a research payment account.
2. Minor non-monetary benefit. The MiFID II rules make provisions for certain content and services to be
received without the need to pay for them under the inducement rules. The list includes:
a. Written research that is paid for by the issuer either to promote a new issue, or where there is a
contractual engagement to produce this written content on an ongoing basis where the
relationship between the issuer and the research provider is clearly disclosed and is made widely
available to the general public.
b. Brief, unsubstantiated summaries on company results and upcoming releases and events.
c. Macroeconomic and fixed income research that is freely disseminated with information that is
generic in nature.
d. Investor roadshows that are organised by an investor relations officer, or where the issuer pays
a third-party provider to organise a roadshow that is made widely available to institutional and
other investors.

Draw your own conclusions how much value this "research" has.