Defining Moment for Independent Research

Abstract

This article addresses the following key points: The US$432.5 million designated for independent research in the brokerage industry settlement is attracting an influx of research providers targeting individual investors. The settlement isn't likely to entice institutional research firms to expand services to the retail investment sector. An ICI proposal seeks to ban the use of soft dollars for third-party research; independent researchers argue that a ban would eliminate a main source of income. US regulators are closely monitoring soft dollar developments in the United Kingdom.