The Financial Conduct Authority (FCA) will provide formal feedback on research market reforms under MiFID II in the second quarter of this year, its chief executive has said.

Andrew Bailey yesterday told the European Independent Research providers association that he acknowledged a number of “concerns and challenges” around the regulation, mainly around scope, pricing, and unintended consequences.

Mr Bailey acknowledged that from an asset manager’s perspective, the inducements aspect of the regulation does not differentiate between whether a research supplier is a broker (where a conflict of interest can clearly a...