Autonomous Said to Charge $1,000 a Stock Report Before MiFIDBy and
Fee for read-only access to equity research starts at $50,000
Upcoming EU rules require that analysis must be paid for
Autonomous Research LLP is offering a pay-as-you-go model for its European equity product in the run-up to the MiFID II rules, which are set to shake up the way money managers pay for analyst reports, people with knowledge of the matter said.
The prices for the new service start at $1,000 for a single stock report and climb to $5,000 for high-end industry research, the people said, asking not to be identified because the information is private. Autonomous Research, which specializes in analysis of financial companies, also charges a single user $5,000 for access to its daily round-up of news and analysis, with the price per client falling as more sign up, the people said.
Most of the London-based company’s research is still charged on an all-in basis, with the new structure mainly aimed at smaller asset managers.
“We have been transparent with our clients on pricing for research since inception eight years ago,” said Chief Financial Officer Jonathan Firkins. “We have a clear and transparent pricing menu which we discuss proactively with existing and prospective clients.”
This new menu-like pricing structure, which has been offered to customers of the Asian equity product since 2015, is a contrast to Autonomous Research’s banking rivals, which have tended to opt for an overall fee as a solution to MiFID II’s requirement that research must be charged for. Banks currently tend to give clients this analysis for free or lump it in with execution costs, but this will have to change when the new European Union rules come into force in January.
Autonomous Research, which was founded in 2009 by former Merrill Lynch analysts, still offers its clients the option of paying an overall fee, with prices varying depending on the level of interaction. For a read-only service, it charges $50,000 for its European equity product, one of the people with knowledge of the pricing plans said.
This price doubles for time on the phone with sale specialists and rises to $330,000 for access to analysts. The company’s premium product costs more still, the person said.
In other responses to the revised Markets in Financial Instruments Directive, UBS Group AG proposes to charge about $40,000 a year for around five users to have basic access to its reports, while JPMorgan Chase & Co. may charge as little as $10,000 for read-only access to its online portal, according to people with knowledge of their plans.
Bank of America Corp. plans to charge asset managers as much as $80,000 a user per year for its research division’s full package of services, according to a pricing document seen by Bloomberg News.
Autonomous Research employs at least 24 analysts across its London, New York and Hong Kong offices.