August 11, 2017 / 3:07 PM / a year ago

JP Morgan Asset Management says will absorb research costs due to MiFID-II

LONDON (Reuters) - JP Morgan Asset Management said on Friday that it will absorb the costs of paying brokers for investment research rather than pass them on to its clients when new European regulation kicks in next year.

FILE PHOTO: A man walks into the JP Morgan headquarters at Canary Wharf in London May 11, 2012. REUTERS/Dylan Martinez/File Photo

“Research costs will be paid by the business and not by MIFID II client accounts,” the asset manager said in statement, referring to clients of the firm who would be affected by the new rules.

The European Union’s MiFID-II directive comes into force in less than six months and one of the main impacts will be forcing brokers to charge an explicit price for research, rather than bundling charges into trading costs.

Reporting by Carolyn Cohn; Editing by Rachel Armstrong

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