EU backs 'unbundling' of MiFID II research and trading costs for asset managers

Another change of stance on fee transparency

Daniel Flynn
clock • 2 min read

The European Commission has proposed the full separation of research and trading fees for asset managers under MiFID II, despite appearing to reverse its stance on "unbundling" costs last year.

In the long-awaited draft rules published at the end of last week, the European Union's executives proposed that asset managers must either buy research with their own money or through a separate research payment account (RPA) funded in advance, unlinked to the volume of trades executed. Investment firms will also be required, upon request by their clients or by competent authorities, to provide a summary of the research provided, in order to avoid research from being considered an inducement. According to the draft rules: "Investment firms providing both execution and research serv...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

More on Asset Managers

Should boutique asset managers care about corporate PR?

Should boutique asset managers care about corporate PR?

One in six set to disappear in next four years

Henry Adefope
clock 17 October 2023 • 4 min read
FCA to consult on amending regimes for alternative fund managers and retail funds

FCA to consult on amending regimes for alternative fund managers and retail funds

Three main priorities for reform

Valeria Martinez
clock 12 October 2023 • 3 min read
Woodford investors to vote in single class as scheme of arrangement vote delayed

Woodford investors to vote in single class as scheme of arrangement vote delayed

Sanction hearing 18 January

James Baxter-Derrington
clock 12 October 2023 • 3 min read
Trustpilot