MiFID II 'unbundling' rules working well for investors - FCA

'Saving millions' for investors

MiFID II research 'unbundling' rules have improved asset managers' cost accountability and saved millions for investors, according to research from the Financial Conduct Authority (FCA).

In a review published on Thursday (19 September), the FCA said the Markets in Financial Instruments Directive's (MiFID II) research unbundling rules are working for investors. MiFID II, which came into force on 3 January 2018, meant asset managers were required to pay for research separately from execution services and either charge clients transparently or pay for research themselves. Before the introduction of MiFID II, research costs were often ‘bundled' into transaction fees borne by investors' funds, leaving firms unable to suitably control how much of their clients' money was be...