SUBSCRIBERS

Debt-rating firm bills clients for research

France's Natixis SA pioneers novel but controversial move

Published Tue, Sep 27, 2016 · 09:50 PM

London

THE bullish stock recommendation came with a warning: the company paid us to write this.

With brokers increasingly unable to subsidise research with indirect payments, France's Natixis SA is pioneering a novel approach: charge clients for coverage, a model that has proved to be fraught with conflicts for debt-rating companies.

Copyright SPH Media. All rights reserved.