Epic MiFID U-Turn Leaves Shrunken Research Business in Its Wake

Doomsayers who predicted the dire impact MiFID II would have on the business of equity research turned out to be spot-on. As regulators finally reach the same conclusion and prepare to reverse the rules, the market Cassandras have an equally gloomy message: The damage will be hard to undo.

Five years after the regulations forced asset managers in the UK and European Union to pay for research separately from trading, sell-side analysis across the region is in a sorry state.

Research spending across Europe has dropped by almost a third since a 2015 peak, while a flock of top analysts ...