FINSIA published an article, 'The Future of Equities Research' on the 4th July 2017 written by Matt Smith.
Within this article, there is talk of the way in which equities research has been conducted in the past, which are currently under review due to regulation changes as a result of the Markets in Financial Instruments Directive (MiFID) implementation in Europe. These new rules are believed to change the equities research space, including Australia, at a very quick pace. (Smith 2007).
Notable Quotes from the Article (Hill 2017):
"Once the backbone of the finance industry, research and researchers within investment banks will see their business continue to change as fast or possibly faster than any other area"
"Markets in Financial Instruments Directive (MiFID), the rules set to come into effect in January, will require research to be unbundled from other services investment banks offer to their clients such as trade execution."
"Onlookers will concede that bank and broker dealer equity research will need to stand on their own two feet as free-standing profit centres at some point in the not too distant future, a change that will lead to a complete rethink of existing investment bank structures"
A link to the article is available below:
FINSIA is the financial services professional industry body in Australia which provides and recognises the current trends, issues and challenges facing
this industry. It supports a network of financials services professionals in order to promote trust and pride within the financial services community
in Australia (FINSIA 2016).
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