SINGAPORE (Mar 4): The MiFid II regulation introduced by the European Union at the start of last year changed the way research on companies gets paid for, prompting warnings that the amount and quality of analysis of small firms would suffer. Instead, the sell side seems to have risen to the challenge by widening its net.

The Markets in Financial Instruments Directive, which obliges investment managers to separate what they pay for research provided by the sell-side community from what they spend on trading fees, stoked concern that large companies would monopolise analysts’ attention.

But figures compiled by consultancy firm Hardman & Co suggest that researchers have responded to the existential threat posed by the rules by shifting more attention to less-scrutinised players.

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