Vanguard latest firm to stop charging clients for research

Expected to cost firm under $5m

Tom Eckett
clock • 1 min read

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...

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