Vanguard latest firm to stop charging clients for research

Expected to cost firm under $5m

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...