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...

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 Investment

7IM's Ben Kumar: When behavioural biases are not all they seem

7IM's Ben Kumar: When behavioural biases are not all they seem

Investment identity more important

Ben Kumar
clock 02 July 2025 • 3 min read
Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Trustpilot