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US asset managers prepare for EU's MiFID II
06 January 2017
Certain funds outside EU required to separate trading commissions from investment research payments
The majority of North American asset managers plan to fully
unbundle all of their brokers globally as a result of MiFID II,
despite uncertainty as to whether the rules apply directly to
New York broker ITG polled 100 buy-side firms in the US at
the end of last year, gauging on MiFID II, a sweeping set
of European financial regulations scheduled to come into force
in January. 2018.
Under the rules, asset managers will be required to
explicitly separate, or "unbundle", their trading commissions
from investment research payments.
"MiFID II is going to have a significant impact well beyond
the shores of Europe, as institutional investors require asset
managers to change the way they budget, fund, price and pay for
research," said ITG’s head of global commission
management, Jack Pollina.
"North American firms are anticipating these changes and are
taking steps now to adapt to the changing expectations of their
The regulations apply to asset managers with operations in
the EU and may also impact asset managers who have sub-advisory
agreements with EU investment managers or that sell and manage
European mutual fund vehicles known as UCITS.
82% of North American firms plan to fully unbundle all of
their brokers globally. However, only 43% of those polled
expect MiFID II to have a direct impact on them.
59% of those surveyed plan to continue paying for research
using commission sharing arrangements (CSA), while 33% expect
to use a combination of both CSA and RPA for payments and 8%
plan to set up a new RPA ahead of the MiFID II start date.