Why Independent?
Changes in the global regulatory environment over the last few years have made the playing-field for 3rd Party Independent Research Providers and integrated securities companies increasingly level. In almost all regulatory regimes, commission can now be used to pay for independent research just as it can for research from integrated investment banks and securities companies - but with one big difference. With 3rd party research, you select precisely which analysts and which research you really want to pay for as opposed to having to pay a bundled commission rate for a whole load of services you may not want to use. This creates a virtuous circle. The more fund managers realise they are allowed to separate out what they pay for research from everything else, so the number of analysts taking the plunge to go independent increases. As a result the quality and variety of independent research is increasing steadily and Fund Managers now have a real alternative for a growing portion of their research needs. Whilst most of the early entrants into the independent space were only able to do so because they provided a quantitatively different type of research product from the traditional sell-side, a number of independents now compete head on with the sell-side, both on quality and price. You now have a real alternative for a growing proportion of your research needs.
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