Vanguard has become the latest firm to announce it will stop passing on research costs to clients, ahead of the rule changes which will take place under MiFID II.
The $4.2trn asset manager said under the MiFID II rules, research costs would be paid out of the management fees and therefore absorbed by the firm. Vanguard said in a statement it expects the costs of research to be under $5m per annum. Asset managers 'underpaying' for research could see access cut following MiFID II Under MiFID II, instead of charging a variable rate for each research payment, asset managers will be forced to allocate a research budget which is charged to their account, in an attempt to increase transparency within the industry. Vanguard is not the first man...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
