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Integrity In The News

Laid-Off Sell-Side Analysts Weight Options Outside Research
Wall Street Journal- June 25, 2009

The financial crisis has led to lower commissions, spurring layoffs at companies ranging from Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) to middle-market securities firms. The demise or merger of securities companies also has added to the number of analysts seeking new jobs.

Integrity Research estimates that 15% of sell-side analysts have been laid off over the past 12 months. “The majority of laid-off analysts are not going to find jobs back in research,” said Sandy Bragg, chief executive at Integrity Research Associates LLC. “It is an extremely difficult environment for analysts.”

Investors, Firms Brace for End of Research Pact
Wall Street Journal- May 12, 2009

Five years after the largest Wall Street firms agreed to supply independent analyst reports to their clients as part of a massive regulatory settlement, the arrangement is coming to an end — something that could hurt both research shops and individual investors….

“During the settlement period, I think the (Wall Street) sell side worked hard to try to make their research more objective. The big question is, without that competition will we start to see a slide back to pre-settlement “sell” levels? I’m not suggesting we will or not; I just don’t know,” said Mr. Mayhew.

Wall Street Stock Research: Soon, Less Independent
Time Magazine – April 25, 2009

What will happen to independent stock research? It is an important question to ask, especially at a time when the ethics of financial firms are again front-and-center…

“While the retail investor may not have been accessing that research directly, investment professionals were consuming it and then presenting it to their clients,” says Michael Mayhew, chairman and director of research at Integrity Research Associates, a firm that tracks and evaluates research outfits. When the settlement money stops, he says, “retail investors will have less information. That’s absolutely clear.”

Expert Network Cos Worry Newcomers May Bring Regulatory Heat
The Wall Street Journal- April 20, 2009

There are now about 40 expert networking firms, compared with just 25 firms a year ago, according to Integrity Research Associates LLC, a firm that monitors the independent research industry…

The Equity Research Shortfall
Business Week – January 8, 2009

In 2009 many investors will find themselves looking for new sources of equity research. Wall Street firms, crushed by subprime losses, have laid off scores of equity analysts.

The total number of senior analysts shrank 40% to 50% over the past year, says Sandford Bragg, CEO of Integrity Research Associates, which tracks analysts from over 1,000 firms for institutional clients. “We’ve been forecasting consolidation for some time, but we didn’t think it would happen so quickly,” says Bragg. Even analysts holding top rankings from Institutional Investor magazine and The Wall Street Journal will find themselves looking for work, he adds.

Bloomberg Partners with Sermo Online Medical Community…
Wall Street & Technology- November 14, 2008

The demand for so-called primary research is growing, according to Michael Mayhew, chairman, founder and global director of research of Integrity Research, an information provider specializing in alternative research. “We’ve definitely seen analysts at hedge funds and mutual funds doing more and more primary research, and this is certainly taking place as they come to rely less on sell-side research and as they are seeking a more proprietary informational edge,” Mayhew relates. “And as they have been doing that, survey work is more and more important,” he adds.

Banks accessorize their Research
Financial News- September 22, 2008

Sandy Bragg, chief executive of Integrity Research Associates, which providers information on alternative research providers, estimates that 15% of total commissions, approximately $1.8bn (€1.3bn) is spent on alternative research and this could increase to between 20% and 25%, or $2.5 bn, in three to five years.

A survey by Integrity Research of 60 large hedge funds and mutual funds in Europe and the UK found that 68% plan to increase their spending on alternative research with only 3% planning to decrease.

Managers call in the private investigators
Financial News- May 23, 2008

Corporate investigators are also helping asset managers consider investments abroad.

Sandy Bragg, chief executive of Integrity Research Associates, which matches asset managers to alternative research firms, said: “One of the main values these investigators provide is when firms are doing non-US investing and there’s a concern about transparency, particularly in emerging markets. These firms can check out the principals involved and make sure they are legitimate.”

Capital IQ adds Alternative Research From FirstRain

Securities Industry  News- April 7, 2008

The buy side wants “top-level data that can be culled from the Web in products like this partnership portends,” said Thomas Hutchinson, SVP and analyst for Integrity Research Associates in New York, which estimates that alternative research will reach $2.5 billion in five years, making it the fastest-growing segment of the investment research market.

UBS Dips Into Indie Research Partnerships
Wall Street Letter – March 10, 2008

UBS Investment Bank is planning to offer independent research through Integrity Research Associates, an independent research consultancy. It acquired a small stake in the Darien, Conn.-based [sic] consultancy last week. UBS’ institutional clients will be able to use Integrity’s services and research on more than 1,600 indies worldwide to determine which alternative research firms would be a good fit for them. The firm is the third large brokerage to roll out independent research, following similar projects by Goldman Sachs and Merrill Lynch last year. Consultants say more banks are likely to follow.

The trend has caught on over the past year because it’s a good source of revenue. Client commission arrangements are more widely accepted and alternative research is increasingly popular among buy-side clients. The partnerships allow investment banks to provide best execution, proprietary research and alternative research in a one-stop shop. “The investment banks are becoming research supermarkets and they are using research consultancies like Integrity Research to figure out how to stock their shelves,” a research executive said.

Hedge funds are buying less investment-bank research
WSJ – March 7, 2008

Hedge funds are increasingly relying on their own equity research and are buying less from investment banks and independent research providers, a shift that could pose a threat to sell-side fees, hedge-fund advisers say. “The amount of research that the buy-side purchases from investment banks has absolutely decreased in the past 12 months and is likely to fall further in the future,” says Michael Mayhew, chairman of Integrity Research Associates LLC, which provides evaluation services to asset managers. Drawing on a report his company published earlier this month, he said hedge funds constituted up to 40% of investment-banking clients, with the rest made up by traditional fund managers. However, hedge funds pay the best, with up to 70% of equity commissions coming from hedge funds. “If you added prime services, hedge funds become even more important to investment banks,” he added.

UBS buys stake in alternative research firm
Reuters – March 6, 2008

Swiss bank UBS said on Thursday it bought a minority stake in research advisory firm Integrity Research Associates LLC, a deal that will let the bank offer clients access to more than 1,600 untraditional research providers… “We thought Integrity was quite unique,” UBS global equity research head Mark Steinert said in an interview, citing its detailed database of providers and methods for matching research firms with investors. “We saw that as a point of differentiation for us.”

More Mutual Funds Tapping Expert Networks
IGNITES – March 6, 2008

Increasingly, mutual funds are turning to expert network providers, which are traditionally used more heavily by hedge fund managers, according to recent research from Integrity Research… Mayhew attributes the growth in the mutual fund space predominantly to the proliferation of long/short hedgelike products, such as 130/30 funds… The Integrity report lists the top three expert networks in five categories, including generalists, technology specialists, health care specialists, Europe and Asia/emerging markets, based on the quality of the experts, service and controls each offers.

New Soft Dollar Arrangements Gain Popularity
BoardIQ -Feb 26, 2008

Indeed, regulators in the U.K. and other countries have required advisors to disclose what they’re paying for research versus execution, which has effectively unbundled commissions, says says Sandy Bragg, president and co-CEO at Integrity Research Associates, a research provider and consulting firm.

“What no regulators have done yet is to require an accounting on a client basis,” says Bragg. “I think that the good news is, in the U.K. experience, disclosing the aggregate amount that’s being spent does make it easier for clients to then raise the issue of ‘How does that pertain to me, and how does that relate to my account?’”

In Canada, regulators originally proposed that advisors break down, to the client level, the amount spent on research and execution; however, the proposal unleashed a “firestorm of protest,” says Bragg. Regulators backed off and ultimately required a regime similar to that in the U.K., he says.

Form ADV Changes Increase Soft Dollar Disclosure
BoardIQ -Feb 26, 2008

“The only silver lining in this is it will presumably force investment advisors to fill out the Form ADV correctly,” says Sandy Bragg, president and co-CEO at Integrity Research Associates, a research provider and consulting firm. “Because many of them still seem to be unaware that they’re actually using soft dollars even though they’re paying for Wall Street research through commissions.”

Integrity Research, which comments on regulatory happenings dealing with soft dollars and research on its website, commented recently on the Form ADV changes. Bragg says that some fund advisors have stated publicly and to clients that they do not use soft dollars to pay for research, when in fact the same advisors pay Wall Street firms to execute trades and receive research in exchange.

Canada Issues New Soft-Dollar Guidance
Securities Industry News – January 18, 2008

The reality is that it would be very difficult for Canada to diverge too far from U.S. practices,” which do not require commission disclosure, said Integrity Research, a Darien, Conn. consulting firm that rates equity research, on its blog. “As it is, the CSA is diverging from the U.S. in technical elements such as the temporal standard or specific items which are eligible.

2007 Review: SEC Greenlights CCAs
Traders MagazineDecember 18, 2007

For the buyside, the unbundling of research and execution has created more transparency as to how much money managers are spending on research, Integrity president Sanford Bragg says. This allows them to determine which firms provide the greatest value. Such transparency helps regulators verify to what degree the buyside is acting in its clients’ best interests….

The Hunt for “Wild and Crazy Ideas”
IDD Magazine – Nov 30, 2007

“Hedge funds, for the most part, are looking for non-traditional research,” says Michael Mayhew, chairman and co-CEO at Integrity Research Associates. Specifically, he says, hedge funds are interested in primary research and expert networking that allows hedge funds to poll end-users of a company’s product. Also, they want research gleaned from the Internet. “Any wild and crazy ideas, hedge funds like,” says the chairman of Integrity Research Associates.

“Expert networks give hedge fund professionals an opportunity to talk to experts and get their point of view on uniquely tailored questions they have,” says Sanford Bragg, co-CEO and president of Integrity.

Independent Research Continues to Grow in Popularity in 2008 by …
Wall Street and Technology - Nov 26, 2007

and that is predicted to grow to $2.5 billion by 2010, according to Integrity Research Associates, a Darien, Conn.-based research firm… In 2006, the alternative research industry generated about $1.8 billion in revenue, and that is predicted to grow to $2.5 billion by 2010, according to Integrity Research Associates, a Darien, Conn.-based research firm. The numbers could even be a bit conservative as more sell-side firms develop independent research platforms, and given the proliferation of CSAs.

Knight Takes on Corp. Access Role
Traders MagazineNovember 13, 2007

This is a boon to both small companies and money managers, as the buyside commonly rates corporate access the No. 1 service it seeks, according to Sanford Bragg, president and co-chief executive of Integrity Research Associates, an information firm that evaluates research providers…. Integrity’s Sanford Bragg said Knight offering corporate access to companies in which it makes markets is a natural extension of the firm’s core focus. “It makes sense, given Knight’s small-cap focus and its specialty in terms of small-cap trading,” he said…. The universe for under-covered stocks is large. Probably 40 percent of all securities have two or fewer analysts, estimated Bill McKeown, a director at Knight. And research for small- and mid-cap companies in particular has been decreasing noticeably, Bragg said.

Where Analysis Doesn’t Lead to Paralysis
Barron’s Online - Oct 8, 2007

Integrity Research Associates, a Darien, Conn.-based research firm, calculated last year that by 2009, institutional investors will spend $4.86 billion on

Surviving the CCA Storm
Traders MagazineOctober 4, 2007

Experts’ projections are unforgiving. The buyside paid the sellside $10.9 billion in U.S. commissions in 2006-of which $2.9 billion went to second- and third-tier firms–according to the most recent data from investment research specialists Integrity Research Associates. Integrity also estimates that through CCAs the top dozen of the largest brokerages could grab as much as half of the commissions that second- and third-tier firms earned in 2006. Buyside broker lists have been shrinking for years for a number of reasons, and more CCAs would only hasten this trend.

Buy Side firms expected to keep hiring research analysts
Wall Street & Technology – Sept 4, 2007

Integrity Research Associates pointed out that its analysts’ outlook is consistent with a recent survey conducted by Greenwich Associates Buy-side firms will increase their spending on internal research by 28.8% over the next few years, from $5.8 billion in 2006 to $7.4 billion in 2011, according to analysts at Integrity Research Associates in New York City, who released a forecast yesterday. The firm believes the buy side will continue hiring more equity analysts due to the decrease in sell-side research and what the analysts say is a decline in its perceived value.

However, Integrity analysts also say they expect this rise in buy-side analysts will actually lead to an increase in the use of external research in the future as these analysts search for tools, proprietary data and content to help them analyze the large universe of companies they must cover.

Integrity Research Associates pointed out that its analysts’ outlook is consistent with a recent survey conducted by Greenwich Associates, which revealed that U.S. buy-side institutions increased the number of equity analysts they employed from just under 10 analysts in 2006 to between 11 and 12 analysts in 2007. This result reflected no change in the number of equity analysts at hedge funds, while mutual funds saw close to a 50% increase from just over 12 analysts in 2006 to slightly more than 18 analysts in 2007.

Goldman Sachs and Other Brokers Develop Alternative Research …
Wall Street & Technology – Aug 22, 2007

“The revenues are growing” on the alternative research side, says Mike Mayhew, CEO of Integrity Research, a consultant to the equity research industry. “[Brokers] see the revenues they now receive with their proprietary research are going to go down no matter what,” he asserts. “As clients start to see how much is being spent on execution and research, they’re likely to spend less on [brokers' proprietary] research.”

Based on Mayhew’s estimates, the alternative research industry generated about $1.8 billion in revenue in 2006 and is likely to grow by close to 37 percent over the next five years, reaching almost $2.5 billion by 2010. In addition, because CSAs and CCAs allow the buy side to execute trades with a bulge-bracket firm and allocate the commission credits to independent research firms, the bulge-bracket firms also have a chance to capture as much as half of the $2.9 billion in commissions paid to second- and third-tier brokerage firms, he estimates.

“The market opportunity for bulge-bracket firms that build robust alternative distribution platforms is to grab a dominant share of the $3 billion in equity commissions used to pay for third-party research,” writes Mayhew in a blog posted in July on Integrity Research’s Web site. While this could pose a threat to the sell side’s own bundled proprietary research products, Mayhew points out in an interview with WS&T that “the largest brokers in the world could experience a significant increase in their execution market share” because the buy side no longer has to trade through the research providers.

And by selling more things to their client base — including alternative research — Mayhew argues, bulge-bracket firms can generate more revenue for the firm. In addition, he believes, if the research leads to trading ideas, the buy side will reward the brokers by sending executions to their desks.

Most of the firms looking to partner with research providers are being careful not to offer research that is competitive with their proprietary research, says Integrity Research’s Mayhew. “They want to keep it toward nonfundamental research and not cannibalize their own research,” he says.

“I think that trend will continue over the next 12 to 18 months,” Mayhew continues. However, “I do suspect that we’ll see firms receptive to marketing fundamental company research directly competitive to their own in the future,” he adds. But, “Those firms like Lehman, Merrill and Citi [that] spend an awful lot on their proprietary research, I think they’ll avoid offering competitive research.”

Goldman Stymied by SEC on CSAs
Traders Magazine August 14, 2007

The Securities and Exchange Commission rebuffed Goldman Sachs and other trading houses in their request for a no-action letter they say… Conigliaro told a recent gathering of research professionals at the annual AQ/Integrity Research conference that half the Street was comfortable with getting paid in hard dollars; the other half was not.

Equity Research Trading Favours
The Economist – Jul 26, 2007

Sandy Bragg of Integrity Research Associates, which analyses the analyst business, points out that investment funds have been moving away from mainstream

Desk Analysts Add Value At Merrill
Traders MagazineJuly 15, 2007

According to Michael Bird, Merrill’s executive in charge of commission management for the Americas, the decision to place some of its securities analysts on the trading desk has been helpful for both clients and traders. The program has been “quite successful,” Bird told attendees at a conference put on by AQ Research and Integrity Research Associates.

CSAs Expected to Grow Rapidly
Traders MagazineJuly 15, 2007

The percentage of commission dollars earmarked for client commission arrangements (CCAs) or commission-sharing arrangements (CSAs) is set… Tom Conigliaro, responsible for Goldman’s soft-dollar programs, told the crowd at a conference sponsored by England’s AQ Research and New York’s Integrity Research Associates that the Securities and Exchange Commission’s interpretive release covering Section 28(e) of the Securities Exchange Act of 1934 last year was driving the trend.

Soft-Dollar Bill on the Horizon
Traders Magazine July 15, 2007

“I think it is likely that Congress will require some more disclosure,” said Michael Mayhew, founder of Integrity Research Associates, “but I don’t think they will abolish [soft dollars].”

Mayhew contended that soft-dollar supporters would argue that the small investor would be hurt by the end of soft dollars. “They will say that hedge funds are not affected by these rules. They can use soft dollars, but the guy in the average mutual fund won’t have that option. That’s not fair,” Mayhew said.

Small Asset Managers Grapple for Research.
Investment Management Weekly - Jul 2, 2007

some independent research houses will fold or merge, said Michael Mayhew, co-chief executive officer of consultancy at Integrity Research Associates of

McVey Quits as Morgan Stanley Investment Strategist
Bloomberg – Jun 11, 2007
Money managers will spend $7.4 billion on in- house research in 2011, up 28 percent from $5.8 billion in 2006, according to Integrity Research Associates

Prudential’s Stock Analysts May Land at Hedge Funds
Bloomberg – Jun 7, 2007

Money managers will spend $7.4 billion on in-house research in 2011, up 28 percent from $5.8 billion in 2006, according to Integrity Research Associates LLC

Forensic Research Gaining Traction.
Money Management Executive - May 28, 2007

Asset management firms are spending $60 million a year to purchase forensic accounting research, according to Integrity Research. “Given the global interest The attractiveness of forensic research comes to the market in waves. In bear or flat markets, it is popular because it is easier to find short ideas; in a bull market it is hard to get good short ideas, said Michael Mayhew, chairman and co-CEO of Integrity Research, which just issued a new service evaluating investment management research called ResearchFocus.

Bank of America Gets Best Stock Prices for Managers
Bloomberg – Apr 23, 2007

Sanford Bragg, president of Darien, Connecticut-based consulting firm Integrity Research Associates LLC, agrees. “Money managers will continue to consolidate their trading, putting pressure on second- and third-tier firms and benefiting the 12 or so largest trading firms.”…

Brokers receive greater leeway on commissions…
Los Angeles Times
- Jan 30, 2007

“This will increase the popularity of these agreements,” said Sanford Bragg, president of Integrity Research Associates, a consulting firm.

Demand Rising for Independent Research: Brokers Pairing Providers…
Money Management Executive
- Jan 1, 2007

In 2004, retail and institutional investors spent $9.31 billion buying research, according to a report published earlier this year by Integrity Research …

The Buy-Side Dilemma: Research vs. Execution
Wall Street & Technology
– Nov 28, 2006

“They are a relatively new animal as far as popularity from the buy side,” says Michael Mayhew, CEO of Integrity Research Associates, a Darien, Conn. CSAs are expected to become more popular, and brokers – particularly the bulge-bracket firms – are marketing the concept to buy-side firms aggressively, notes Integrity Research’s Mayhew. Firms such as Credit Suisse, Goldman Sachs and Morgan Stanley are offering commission-sharing programs, he relates.

But, “They’re not marketing the concept of CSAs,” according to Mayhew. “They’re marketing the concept of ‘Don’t you think it would be better if you had a research decision and an execution decision [separately],’” he says. “You can trade with the best execution provider, and through a commission-sharing arrangement, we can then pay a research provider from the pooled commissions.”

Additionally, buy-side firms are starting to realize that it is hard to justify to clients that they truly are getting best execution from all 200 brokers, Mayhew continues. “If they are asked, ‘Why are they trading with broker No. 199?’ and the response from the buy side is that they are giving good research, that’s not the right reason to be picking a broker from a fiduciary standpoint,” he asserts. “The reason needs to be best execution,” Mayhew asserts. “So we’re seeing the bulge-bracket firms absolutely pitching the idea, and it makes sense to the buy-side firms.”

Seeking Soft-Dollar Clarity
Securities Industry News
– Nov 6, 2006

Integrity Research says it costs an independent or buy-side firm about $10000 to cover an individual stock, versus over $100000 for an investment bank or

Fidelity may cut research budget again.
Wall Street Letter
- Oct 30, 2006

“Such deals are inevitable,” said Michael Mayhew, CEO of consultancy Integrity Research Associates. While the deals could protect against diminishing

A Top Retail Analyst Takes Her Rolodex Into Independent Research
New York Times
– Oct 6, 2006

A study done this year by Integrity Research, a consulting company that tracks the research industry, found that independent research has had mixed success in the years since the global settlement. According to the Integrity Research report, newer models like expert-network providers, which link customers to an array of industry specialists rather than provide their own research, have grown sharply. A firm like Gerson Lehrman Group has been very successful in developing expert networks for its clients to tap into.

SEC Clarification on Soft Dollars Said to Level Playing Field:…
Securities Industry News
– Aug 7, 2006

Since 1990, the number of independent research companies has increased from 125 to 425, according to a March 2006 report by Integrity Research Associates,

Research Spending on the Rise: SEC Guidelines Create Business
Investment Management Weekly
– Jul 31, 2006

Michael Mayhew, founder and chief executive of Integrity Research Associates predicts that independent research will outpace its proprietary and sell-side

SEC Vote Preserves Soft Dollars- More to come on commission sharing

Wall Street & Technology - Jul 13, 2006

Commenting on the vote, Michael Mayhew, CEO of Integrity Research, wrote in his blog, “SEC Votes to Keep Soft Dollars In Place” yesterday, “In short, the commission expressed its support for continuing to allow money managers to use soft dollars to pay for proprietary and third-party research services, clarifying months of uncertainty in the marketplace whether soft dollars would continue to be used as the primary currency to purchase investment research.”

In an interview today, Mayhew says the SEC basically voted on implementing the interpretive guidance as rule. “That’s effectively what’s happened there wasn’t any change to their interpretive guidance.”

“You can’t pay for computers, the connectivity for the computers, but you can pay for the software if it specifically helps you either with execution or with your investment process,” says Mayhew in today’s interview.

According to Mayhew’s blog, however, market data services, certain investment related seminars, and even “mass market” services such as newspapers, magazines and newsletters would be allowable.

“I think folks in the U.S. are trying to get a handle on what the SEC’s views of CSA agreements are specifically and how they may be used in the U.S. context compared to the U.K.,” says Mayhew. The U.K. money managers are aggressively using commission-sharing agreements to facilitate unbundling. They disclose to their pension funds how much of their commissions are being used for executions and how much are being used for research, he says.

In the U.S., Mayhew says, there hasn’t been this same level of disclosure, from the buy-side to its pension fund clients or from the sell-side to the buy-side. So what can the industry expect to happen next? Mayhew says the SEC won’t implement the proposed guidelines until the beginning of 2007. From now until the end of the year is just the waiting period for it to be implemented.

Despite Settlement, IPO Fees Still Lure
Wall Street Journal
- May 25, 2006

The hiring of analysts “is still driven to a large extent by banking business, particularly IPO volume,” says Michael Mayhew of Integrity Research …

StockGate: Gradient Reportedly Admits To Producing Biovail Research…
America’s Intelligence Wire
– March 26, 2006

Michael Mayhew, CEO of Integrity Research Associates, appearing on the network shortly afterwards, disagreed, saying that disclosure of compensation in any

Money Managers Bulk Up Research Teams: As Soft Dollars Shrivel,…
Investment Management Weekly
– March 13, 2006

But in the long term, not all of these firms can survive, according to Integrity Research Associates. “A large number of independent research providers will
“Are you going to pay for external research that you can’t control, or internal research, which you can control?” said Michael Mayhew, CEO of the Darien, Conn.-based research and ratings company.

Spending on Independent Research Projected to Grow 112 Percent in…
eReleases
- Mar 10, 2006

“One of our key findings is that the independent equity research industry is undergoing a seismic shift that will produce both winners and losers in the coming years,” notes Michael W. Mayhew, CEO of Integrity Research Associates. “Our analysis shows that the marketplace for independent equity research will continue to grow in the coming years as institutional investors search for reliable sources of profitable investment ideas.”

Mayhew warns, however, “Not all independent research providers will benefit from this rising tide as increased buy-side reliance on internal research, more direct competition from sell-side firms, and the trend towards unbundling research from execution will prompt asset managers to take a hard look at what research they are using and how much they are paying for it.” In fact, Mayhew explains, “We expect these pressures will force a number of independent research firms to merge with other larger players, or exit the business altogether.”

Buy-Side Investment on Research Projected to Double in Next Five…
HighBeam Research
– Mar 3, 2006

….. “2006 US Equity Research Industry Outlook,” written by Integrity Research Associates, LLC. This comprehensive 325-page report describes the key developments in equity research during the past decade; analyzes the forces behind these changes; outlines the most critical challenges facing the three major sources of equity research – sell-side firms, buy-side firms, and independent research firms; and …

Transition Management Conference
P&I Daily
– March 03, 2006

“Our analysis shows that institutional investors will be forced to rely on their own internal research in the coming years, as regulatory pressures have prompted dramatic changes at investment banks and brokerage firms,” Michael W. Mayhew, CEO of Integrity Research, said in a news release.

Mr. Mayhew said he expects the share of in-house equity research to reach 41% of total equity research by 2009, up from 26.2% in 2004, reflecting both the decline in brokerage research and limited use of independent research. “Buy-side firms will invest more on internal research as sell-side firms reduce their research staffing and coverage,” he said in the release.

Spending on Sell-Side Research Projected to Fall 28 Percent in Next…
eReleases
- Feb 24, 2006

Mayhew explains, “Sell-side research will lose market share in the coming years as institutional investors are forced to rely more on their own internal research capabilities…… will prompt asset managers to take a hard look at what research they are using and how much they are paying for it.”

Lehman Moves to End Bundled Fees
Wall Street Journal -
Feb 23, 2006

their research from execution services,” said Michael Mayhew, chief executive of Integrity Research Associates, a Darien, Conn., consulting firm.

‘Channel Checkers’ sniff about for trend
Wall Street Journal
– Aug 8, 2005

talk to enough people,” says Michael Mayhew, chief executive of Integrity Research Associates, a research consulting and advisory firm in Darien, Conn.

Making a Market in Buy, Sell and Hold
thestreet.com
– Jul 20, 2005

…“As long as there is a commercial link between the issuer and the research firm, there is the potential for a conflict,” says Michael Mayhew, CEO of Integrity Research Associates, a consulting firm that monitors stock research firms for institutional investors. “The question is how you mitigate it. It’s not clear to me it will be conflict-free.” …

Stock Research Gets More Reliable
Wall Street Journal
– Jun 7, 2005

up from fewer than 50 firms five years ago, says Michael Mayhew, chief executive of consulting firm Integrity Research Associates LLC.

Still Outside Looking In
BusinessWeek
– May 16, 2005

Trouble is, fully 80% of independent research is paid for with soft dollars, says Michael W. Mayhew, chief executive of consulting firm Integrity Research …

Investor’s Business Daily: Breaking News
Investor’s Business Daily
– Jun 21, 2004

Integrity Research
Associates’s CEO Michael Mayhew was quoted as explaining, that if there weren’t different versions of the same report, “no good research

Independent outlook brings rewards for BNY Jaywalk…
Financial Times
– March 4, 2004

probably account for 35 per cent to 45 per cent of the independent research market, estimated at Dollars 1.4bn in 2003 by Integrity Research Associates.

Sell-side research heads for extinction Two-thirds of research is…
Financial Times
– Jan 1, 2004

From 2004-2009 fund managers will cut spending on sell-side research by 28 per cent from Dollars 5.4bn to Dollars 3.9bn, according to Integrity Research …