September 7, 2017 / 10:03 AM / 3 months ago

Majedie says to absorb external research costs under Mifid II

LONDON, Sept 7 (Reuters) - British fund firm Majedie Asset Management said on Thursday it would absorb the cost of external research under new European Union rules due to go live in early 2018.

The EU’s Markets in Financial Instruments Directive II will require asset managers to agree a price for broker research after years when the cost was bundled together with other services including trade execution.

While some asset managers have decided to pass the cost on to clients, many - including Vanguard, Baillie Gifford and JPMorgan Asset Management - have decided to pay the cost themselves.

Majedie said it is currently spending around 3 million pounds ($3.92 million) a year on research. ($1 = 0.7652 pounds) (Reporting by Simon Jessop; editing by Maiya Keidan)

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