Smartest People Exit Research on MiFID II, Says Serra

The video discusses the implications of MiFID 2 on the financial market, highlighting the disparity between the global market cap and the research budget. It critiques the focus on research costs instead of distribution costs in asset management. The discussion predicts a decline in research quality and shifts in employment, with a trend towards passive or ultra-active investment strategies.

What is the main issue with MiFID II according to the speaker?

• It reduces the number of Bloomberg terminals.

• It increases the global market cap.

• It targets research costs instead of distribution costs.

• It focuses too much on distribution costs.

What percentage of the overall cost in asset management products is attributed to distribution costs?

• 66%

• 75%

• 33%

• 50%

According to the speaker, what is likely to happen to research quality due to MiFID II?

• It will remain the same.

• It will decline.

• It will improve significantly.

• It will become more expensive.

What trend in investing does the speaker predict as a result of MiFID II?

• A decrease in asset management firms.

• A shift towards passive or ultra-active investing.

• An increase in middle-ground investing.

• A rise in advertising costs.

What challenge do those in the middle of the investment spectrum face according to the speaker?

• Higher distribution costs.

• Increased research costs.

• Asset erosion.

• More competition from boutique firms.