Aberdeen Standard Investments, the investment arm of newly merged Standard Life Aberdeen, has joined the growing group of asset managers that have pledged to absorb research costs when Mifid II rules take effect next year.
‘From 3rd January 2018, Aberdeen Standard Investments will absorb all research costs to coincide with the new Mifid II legislation which comes into effect on that date,’ the company said in a statement.
The company attributed its ability to absorb the cost as one of the scale benefits gained from the merger of Standard life and Aberdeen Asset Management.
The firm added: ‘External research is an important and valuable input to our exceptional in-house research capabilities and we remain committed to our portfolio management teams’ ability to maximise active research insights across regions and asset classes for the benefit of all clients.’
Aberdeen Standard joins Jupiter Asset Management, JP Morgan Asset Management, Hawksmoor, T Rowe Price, Allianz Global Investors and most recently Aviva Investors, which have all announced that they will absorb research costs and not pass it onto clients.
Despite the growing group of companies absorbing costs, some large firms have chosen to continue charging clients for research costs. These include Man Group, Invesco, Schroders, Janus Henderson and Amundi.