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JP Morgan AM makes MiFID II research payments decision

JPMmorgan-buildingJP Morgan Asset Management (JPMAM) is to absorb costs for securities research under the EU’s market reforms, known as MiFID II.

The firm is the latest to say it will pay for research provided by brokers rather than charge clients.

The provision covers payments for broker research for all MiFID II accounts, JPMAM said.

Under MiFID II, the revised Markets in Financial Instruments Directive that comes into force in January next year, firms have the choice of paying for research from their own pockets, or charging clients under a more transparent system involving research payment accounts. 

In the UK, broker research has cost clients £1.5 billion (€1.7 billion) a year, according to the Financial Conduct Authority.

JPMAM, which has $1.9 trillion (€1.6 trillion) in assets under management, said it commits “substantial resources” to internal research capabilities, but also uses external analyst research where value could be added to client portfolios.

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