Bernstein Said to Quote $150,000 for MiFID Basic Research

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Alliance Bernstein LP’s sell-side unit has quoted smaller firms about $150,000 a year for two or more fund managers to access analyst reports and other basic services, people familiar with the negotiations said.

A London-based team for Bernstein Research is negotiating the contracts, with quotes depending on how much a company has used the firm’s services in the past and its future needs, the people said, asking not to be named because talks are ongoing. A basic service would be defined as including analyst reports, group conference calls or meetings.

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The European Union’s MiFID II regime is forcing asset managers to unbundle trading commissions from investment research, which had often been provided for free to clients. As brokers and asset managers race to agree on a price for research ahead of European regulations, prices proposed to clients so far include 120,000 euros ($137,000) a year for premium packages from Credit Agricole SA and Nomura Holdings Inc.

A London-based spokeswoman at Bernstein said the company doesn’t comment on discussions with clients. Bernstein Research has a team of about 65 sell-side analysts globally.

The U.K.’s Financial Conduct Authority said last week that banks and brokers selling investment research will be able to offer their fund manager clients free trial periods for as much as three months under MiFID II. The guidance was published as part of the regulator’s final policy statement before the rules come into effect in January.

— With assistance by Stefania Spezzati

(Updates with FCA detail in the final paragraph.)
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