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Fund Managers Mostly Taking the Hit on MiFID Research Costs

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Research Firms Prepare to Battle Banks Under MiFID

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Asset managers are slowly showing their hand on whether they’ll absorb the costs of research after new European regulations come into force in January. So far, most of them are taking the hit rather than passing them onto clients.

The European Union’s revision of the Markets in Financial Instruments Directive, designed to make markets fairer and more transparent, forces money managers to pay separately for research and trading services that they get from banks. That, the regulators hope, will ensure they act in the best interests of their clients, rather than being induced by the offer of free analysis.