MiFID II: One more asset manager agrees to fund broker research

Research_keyboardKempen Capital Management, a firm that invests €46.9 billion, is the latest asset manager to say it will pay for securities research out of its own pocket under new rules.

Netherlands-based Kempen said its decision would cover both funds and segregated mandates when the capital market reforms known as MiFID II come into force in January 2018.

MiFID II’s ‘unbundling’ rules give firms the choice to pay for broker research themselves, or continue to charge clients but with more transparency.

Lars Dijkstra, chief investment officer, stated: “We welcome any chance to increase transparency and efficiency in the financial sector. Kempen has always invested heavily in both the quality and quantity of our internal research system. This makes us less dependent on external research service providers.”

Dijkstra added that Kempen would also continue to work with a group of external research providers.

Kempen’s decision follows a number of other firms that have said they will fund research costs themselves, including Jupiter Asset Management and First State Stewart Asia

Funds Europe analysed what the significance of unbundling rules for fund boards is in the June issue of the magazine.

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