MiFID II: Seven key implications for asset and wealth managers
By , 5 Jun 15
EY’s seven ways MiFID II will affect asset and wealth managers
2) Broker commissions and payment for research
MiFID II will put an end to the practice of portfolio trades coming with bundled commission rates that can be used for research.
Among other things, under the regulation, wealth and asset managers will also be able to charge portfolios directly with research costs, providing a set of specific requirements are met.
According to EY, some uncertainty remains as to whether these proposals will be diluted by the European Commission before being introduced.
It said: “Irrespective of that possibility, it is quite clear that, as a minimum, the charging of research costs to clients is going to require considerably more justification and process than has existed to date.”
