Wall Street Braces for MiFID-Style Rules Descending on the U.S.
- Capital Group, T. Rowe will eat costs of outside research
- ‘Cat is out of the bag’ due to Europe’s sweeping rule changes
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The firewall that Wall Street hoped would protect its U.S. stock and bond analysts from tough European rules is starting to crack.
At issue are European Union regulations that took effect last year that forced banks to start charging clients separately for trading and research, rather than bundling the services into one bill. In October 2017, U.S. brokers scored a major win when the Securities and Exchange Commission issued a legal reprieve that at least temporarily kept the rules from spreading to America.