BUZZ-Schroders hit by BofA ML double downgrade
** Shares (Berlin: DI6.BE - news) in Schroders (LSE: SDR.L - news) falls sharply after a double downgrade from BofA Merrill Lynch, to "underperform" from "buy", with the bank's analysts citing regulatory worries.
** Asset manager is among worst 3 performers on the FTSE 100 , down 3.6 pct, on relatively high volumes.
** BofA ML cuts its PT for Schroders by 14.2 pct.
** Broker says ESMA consultation document raised the possibility that European asset managers may be prevented from paying for research out of dealing commission - "unbundling".
** For asset managers potentially subject to unbundling rules, BofA ML has applied a 10 pct discount to fair value which the broker says it will remove should ESMA decide to reject the unbundling language in its revised guidance.
(RM (LSE: RM.L - news) ://tricia.wright1.thomsonreuters.com@reuters.net)