Hardman & Co has positioned itself with a unique proposition compared with other providers of research in the Tax Enhanced market.
It told GBI Magazine that it is the only company that offers MiFID II compliant independent research absolutely free to advisers.
It added that its commissioned research model means it has unlimited distribution reach for its EIS reports, as well as its public company research.
Vilma Pabilionyte, responsible for Business Development & Marketing, said: “The main aim of MiFID II is to ensure transparency in the relationship between fund managers and brokers/suppliers, and eliminate inducements, in the form of broker research provided for free to fund managers to encourage them to deal with that broker. Hardman & Co is not inducing the reader of research on a product provider to trade through us, as we do not deal in any security or legal entity.
“In addition, Article 12(3) of the MiFID II directive makes it clear that commissioned research falls within the scope of ‘minor non-monetary benefits’ and therefore can be freely received by the recipient. Classification of our research Research by Hardman & Co constitutes a ‘financial promotion’ for the purposes of section 21 of the Financial Services and Markets Act 2000. But unlike most broker research, it does not contain a recommendation or ratings system, meaning the recipient does not have to go through a ‘Know your Customer’ exercise. This, and the fact that research is paid for by the issuer or provider, means any recipient can freely receive our research, at zero cost to them.
“Under MiFID II it is a requirement that advisers must understand the nature of the product they are offering and match the risk profile of the product to that of the investor. Our team of specialist market analysts can analyse the product in the context of its market sector, focusing on investment risk, rather than the tax benefits. We take this approach in our research and do not use ratings which do not consider the investor’s risk profile. As a result, we are confident that we help advisers meet both regulatory and client needs.”