The rise of independent research outfits

EU rules have reduced analysts’ coverage of small caps. But new sources of information have sprung up, says Scott Longley.

Hotel Chocolat © Hotel Chocolat

A chocolate retailer such as Hotel Chocolat has no trouble getting attention
(Image credit: Hotel Chocolat © Hotel Chocolat)

Call it the sell-side's Project Fear. Early 2018 saw the introduction of the EU's Markets in Financial Instruments Directive II (Mifid II). Thousands of pages of new rules governing the financial sector included provisions on unbundling research from other broking services.

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