IPO Issue
The legislation may also dissuade companies from becoming publicly traded, as the unbundling of research and execution is widely expected to lead to less coverage of smaller firms by analysts.
“If a corporate broker would only market a firm to investors who pay for research, getting new money in the door will be far more challenging,” said Nick Burchett, U.K. equities manager at Cavendish Asset Management. “Limited access to capital is going to be a huge hurdle for companies coming to market if they now find they have only a very concentrated shareholder base. It may also be tougher to secure those cornerstone investors who are prepared to support a company for the long-term.”
The regulator is unbundling research in an attempt to get a better deal for asset owners. That means asset managers must stop receiving analysis they haven’t purchased. One investment bank, in an attempt to stem the hundreds of research emails that have traditionally been received, is sending automated emails asking not to be sent analysis and seeking written confirmation that the sender will comply.
...
No comments:
Post a Comment