Be alert to the consequences of the Mifid II P&L research trend

Hedge funds that opt for P&L are still subject to directive’s inducement rules

Mifid II has redrawn the investment research and information landscape in Europe, creating commercial opportunities and heightened regulatory risks for hedge funds. The widespread move by large European long-only managers to fund research via P&L is creating unprecedented information asymmetries between managers, based on their ability and willingness to pay