European Commission reverses stance on MiFID II unbundling rules

Grants reporting immunity to fund managers

Daniel Flynn
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Asset managers across Europe will be able to continue paying for research and trading within one fee, as the European Commission u-turns on plans to unbundle these costs under MiFID II, according to a report.

In a document seen by Reuters, the Commission opted to allow the continuation of "commission sharing agreements", which are increasingly being used by European asset managers to pay commission to brokers and fund researchers within one fee. ESMA wanted asset managers to pay for research from a separate account, with charges agreed in advance, causing concern for many boutique managers, which do not have the scale for internal research functions. But the latest document sets out the conditions under which a single payment could continue, meaning commission-sharing agreements will not b...

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