Mifid II: Allianz GI to take research cost on own book

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Allianz Global Investors (Allianz GI) is the latest asset manager to announce that it will take costs of external research, or broker research on its own book as of 2018  rather than passing them on to clients.

The announcement comes as asset managers across the continent are bracing themselves for the implementation of Mifid II per January 2018, which requires separate invoicing of analysis and research provided to clients. Asset managers have the option of passing the additional costs on to clients or absorbing them on their own book.

According to a recent survey conducted by the Financial Times, as of 1 September 2017, a minority of eight asset managers, including Amundi, BNP Paribas and Union Investment have decided to pass the costs on to clients while 24 other firms surveyed announced that they will absorb the costs, a significant section of firms have not yet announced their position.

Other asset managers who will not pass on the costs to clients are Unigestion, as reported by InvestmentEurope in August, and JOHCM. 

“As a trusted advisor, we are committed to protecting our clients’ best interest as we implement regulatory changes. This is the best solution for the customer as well as for an efficient investment process”, said Steve Berexa, Global CIO Equities of AllianzGI.

He adds: “Within the framework of our global business model, which benefits from a globally integrated investment platform where research and investment ideas are shared, we have determined that the efficient and best-suited solution for all parties involved is to assume external research costs ourselves. It is also in the spirit of MiFID II, which aims to avoid conflicts of interest in securities trading.”

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