Concern over research payments sparks sales platform innovation

Michael Bow
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THE AUTHOR of a business classic is rolling out a new platform for fund managers to buy research in the wake of regulatory concerns over how firms pay for analyst notes.

Russell Napier, who wrote the cult book Anatomy of the Bear, yesterday launched the Electronic Research Interchange (Eric) with former senior Icap broker Chris Turnbull.

The platform offers so-called unbundled research, which allows stock pickers to buy research separately from execution services.

The UK watchdog, the Financial Conduct Authority, warned in July it was concerned dealing commissions paid by savers were being used to pay for research instead of trading services.

The FCA said there was a lack of price transparency in the market which had prompted the launch of the Eric platform.

“Fund managers can show the price they have purchased for the research, it gives full transparency,” Turnbull told City A.M.

He added the platform had received a “thumbs up” from fund managers, with further meetings planned with more buyside firms.

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