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Fund manager makes research hire to cover Mifid II rules

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Hermes Investment Management has appointed a new research director to oversee procurement of research for investment teams and assist with Mifid II issues.

Orla Murphy, who becomes research director, joins from VTB Capital.

Mifid II will force fund managers to unbundle the costs of their investment research, separate trading and research fees.

Firms will have to either pay for research directly from their own resources, or pay from a separate research payment account which must be unrelated to volume or value or client transactions.

Independent advisers and portfolio managers will be banned from accepting payments from third party firms on investment research.

According to the third FCA Mifid II consultation paper, published today, only certain research products such as commentary on market moves or company results may be exempt as “minor” and “non-monetary.”

In the newly created role, Murphy, who will report to head of investment Eoin Murray, will focus on procuring equity and credit research from brokers and independent researchers.

She will also be responsible for establishing, reporting and linking research value, managing the research budget, transaction cost analysis and other Mifid II issues.

Murray says: “With extensive front office management experience and a strong track record of following market developments in the financial services industry, Orla is ideally placed to implement Hermes’ new research procurement programme.

“She will ensure our investment teams have the resources they need while developing best-practice adherence to incoming regulation.”

Prior to VTB, Murphy held business management and analysis positions at Barclays Wealth and Fidelity Investments.

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