How MiFID II Changed Consensus Management
MiFID II transformed the way investment research is produced, distributed and consumed across Europe. While designed to improve transparency, it also increased the importance of professional consensus management.
A changing research landscape
The unbundling of research changed the commercial model for analyst research, leading to more selective coverage.
Fragmentation became the new reality
Consensus estimates became more fragmented as participation differed between providers and platforms.
The challenge for Investor Relations
Investor Relations teams increasingly became the only party with visibility across the analysts covering their company.
Looking beyond regulation
MiFID II made quality, comparability and consistency more important than ever.
Key Takeaways
MiFID II changed the economics of research.
Consensus data became more fragmented.
IR teams play a greater role.
Quality matters more than ever.
In Practice
The impact of MiFID II is structural. A fragmented research environment increases the need for reliable consensus management.
About VARA
VARA is an independent specialist in consensus management, supporting publicly listed companies with the collection, validation and publication of high-quality consensus estimates. For more than 20 years, VARA has helped Investor Relations teams improve transparency and communication with the capital markets.
