Church House to take on research costs in 'no brainer' move

'No brainer'

Church House Investments has become the latest firm to announce it will absorb research costs instead of passing them onto clients, ahead of changes which will take place under MiFID II at the start of next year.

James Mahon, CEO and CIO of Church House, said the decision was a "no brainer" as the other option would have simply been too complicated to implement. Under MiFID II, which comes into effect on 3 January 2018, firms will be forced to allocate a research budget rather than charging a variable rate for each piece of research. MiFID II blog: Industry progress as 2018 deadline approaches Asset managers will have the option to either pay for the research from their own profit and loss (P&L), recover it by increasing management fees or pass it onto clients directly through a research pa...