MiFID II, which is due to have a
profound impact on the investment
management industry globally.
Ho notes research revenues across
APAC have already decreased over
the past two years. This will likely
continue to decline following the
implementation of unbundling as
asset managers are forced to justify
the cost of research they pay.
Some of the largest and most
active investment management
firms in Asia have global footprints
and sizeable operations in Europe.
Those firms have been tasked with
ensuring compliance with MiFID
II’s unbundling requirements.
Fragmentation across markets
in Asia has led to regulators not
pursuing similar rules as in Europe.
For those larger buy-side firms, local regulatory environment is now
less of a concern.
The Asian Securities Industry &
Financial Markets Association (
ASIFMA) established a dealing commissions working group to tackle
the issue and it raised concerns of
the impacts of unbundling on the
Asian fund management community. A key concern for the buy-side
is the burden of determining and
calculating the price of research.
Many have expressed concerns un-
“Our traders will have more
capacity to deal with the di;cult
trading environment… which I
think will be crucial in times of