The Role of Asset Owners in the Market for Investment Research: Where are the Fiduciary Capitalists?

11 Pages Posted: 18 Apr 2016 Last revised: 10 Jul 2018

See all articles by Alistair Haig

Alistair Haig

Franklin Templeton

Stewart Scarth

Frost Consulting Ltd.

Date Written: April 15, 2016

Abstract

Fiduciary capitalists, such as leading pension plans and endowments, can be influential in aligning the interests of asset management firms with their clients. In the market connecting investment professionals with the information they need to meet client goals, we identify numerous conflicts of interest, but find little action has been taken by asset owners. Interest in the obscure practices surrounding the use of dealing commissions for research has heightened since 2014 due to regulatory scrutiny in the U.K. and the impending implementation of the second Markets in Financial Instruments Directive (MiFID II) in Europe. The authors make recommendations to guide asset managers and asset owners through a complex information market during this time of dramatic change.

Keywords: Investment Management, Fiduciary Capitalism, Incentives, Conflicts of Interest, Governance, MiFIDII

Suggested Citation

Haig, Alistair and Scarth, Stewart, The Role of Asset Owners in the Market for Investment Research: Where are the Fiduciary Capitalists? (April 15, 2016). Available at SSRN: https://ssrn.com/abstract=2765539 or http://dx.doi.org/10.2139/ssrn.2765539

Alistair Haig (Contact Author)

Franklin Templeton ( email )

Edinburgh, Other (Non US)
United Kingdom
EH10 5TE (Fax)

Stewart Scarth

Frost Consulting Ltd. ( email )

60 Gresham St
London, EC2V 7BB
United Kingdom

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