Wall Street banks may not be able to sell their U.S. research to European asset managers because a regulatory conflict between the two regions looks unlikely to be resolved before a January deadline.
Bloomberg News reports that new European Union directive that says banks must charge for research separately from broking services clashes with the U.S. regime, which bans this approach unless banks register as investment advisers. That’s something American banks want to avoid because it creates a fiduciary duty to clients and limits their ability to trade, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly.
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