Perpetual Ltd. is considering bringing its investments and equities research in-house in light of a transparency push among regulators, The Australian Financial Review's Street Talk blog reported March 23, without naming sources.
The review is in the early stages but there is a strong possibility that an in-house capability could be set up, the blog reported.
The review was reportedly driven by reforms in Europe called Mifid 2. Regulators are looking to make the industry more transparent as asset managers pay for services such as trader execution and stock research. The new regime came into effect in Europe in 2018. The regulations have not made their way to Australia yet. But if Perpetual does set up an in-house research division, it could have significant ramifications for the research analyst community and investment banks. Perpetual is one of the biggest clients in the market for bulge-bracket and other broking firms, the publication noted.