Amundi Announces Absorption Of MiFID II Research Costs

Dec 15 2017 | 9:04pm ET

Bringing its final decision nearly down to the wire, Paris-based money manager Amundi has announced it will absorb the costs of sell-side and independent research once the EU’s MiFID II regulatory framework comes into effect in January 2018.

MiFID II requires investment managers to pay hard dollars for research and corporate access services provided by broker-dealers and third-party providers instead of bundling them with commissions. 

The new regulations offer three alternatives for how firms can account for the payment of these new costs, including paying for them from their own P&Ls – the option chosen by the majority of buyside firms heading into the fall. 

At the time, Amundi was initially among the small group of companies, including Goldman Sachs Asset Management, BNP Paribas and Man Group, who initially opted against covering the research costs.

However, since then, the vast majority of managers have announced the intention to absorb the costs. Amundi said last September that it was “reviewing its options” in the context of its acquisition of Pioneer Investments nearly a year ago as well as the impact it would have on its highly regarded 200-person internal research team. 

After accounting for Amundi’s decision, only three of Europe’s 49 largest institutional asset managers still plan on charging clients directly for research, according to IPE. 

MiFID II is scheduled to go into effect on January 4.

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