Implications for Asset Management companies and ongoing actions for compliance

Thus, whether Asset Managers decide to absorb the cost of this regulatory shift or pass it on to their clients, they have to undertake the following actions in order to manage the research costs as strictly as possible:
▪ Rationalization of the number of research providers
▪ Review of what was paid so far, and definition of needs closer to the actual research usage and their deemed fair associated costs
▪ Implementation of an operational framework
✓ to precisely define needs and associated budgets,
✓ to strongly negotiate with each selected research provider, and contract the prices and agreed upon associated usage,
✓ to fairly allocate these costs to research consuming teams’ funds and mandates,
✓ to closely monitor the usage, quality of the services provided (by assessing each of them in order to accurately rank providers, which could potentially lead to remunerating the best of them more, or at least be used in future negotiations) and payments,
✓ to handle minor non-monetary benefits and unsolicited research.