City veteran launches new brokerage to take advantage of new regulations

Alexandra Rogers
Follow Alexandra
Claridge has worked in the industry for 35 years

The former CEO of City investment bank Northland Capital Partners, Patrick Claridge, has launched his own independent brokerage company offering financial advice and corporate broking services.

Claridge, a City veteran who has worked in the industry for 35 years, is setting up Stanford Capital Partners with Chris Coleman as co-founder to help smaller companies grab investment and pursue mergers and acquisitions.

The launch of Stanford Capital has come at a time when the new Mifid II rules, which came into force at the beginning of this year, are shaking up the way brokerage houses work.

Fund managers are now banned from receiving research from brokers for “free”, on the grounds that it could be seen as an inducement to trade with that broker.

Most brokers now have a set cost for their research which fund managers must pay. Yet smaller companies, who are worried that brokers may otherwise ignore them, are increasingly taking advantage of an exemption which allows them to pay a broker to do research which can then be distributed to fund houses for free.

With a host of respected City figures in its top ranks, Stanford may be well-placed to slide into the changing brokerage marketplace.

Read more: Broker research model comes under fire as new regulation plays out

Related articles