JPM Asset Management has become the latest high profile firm to announce it will shoulder the costs of external research payments in the wake of MiFID II coming into effect.
The $1.9 trillion asset manager said it already commits ‘substantial resources’ to internal research, while it will use external analyst material where it feels it can add value.
This puts JPM AM in the same camp as the likes of Vanguard, Hermes Investment Management and M&G Investments, all of which also said they would swallow the costs once MiFID II comes into force in 2018.
However, other firms, most notably Amundi, have ruled out covering costs and said it would push the costs of paying for analyst notes and insights back to customers through a commission sharing agreement.
The issue of research cost payments has been a contentious issue for asset managers seeking to ensure MiFID II compliance, with questions over how to accurately price the usefulness of material.