JPMorgan follows Vanguard to absorb research costs under Mifid II

JPMorgan Asset Management has confirmed it will absorb research costs under Mifid II following in the footsteps of Vanguard, which announced its intention to do the same earlier this week.

A spokeswoman says: “JPMAM already commits substantial resources to our internal research capabilities and we have not made any changes to our internal research teams as a result of this policy change.

“We also utilise external analyst research where we believe it can add value to client portfolios.”

Vanguard led its US rivals on making an announcement about whether it would absorb research costs or charge them to clients when the EU regulation comes into force from the start of next year.

However, JPMAM becomes the first global active manager to take a decision.

They would not comment on the cost to the company.

Vanguard says their own costs are expected to be less than $5m annually although this is in part due to its strong passives offering, as well as its existing internal research capabilities.

Aberdeen, which is a tenth the size of Vanguard, has said it has budgeted $10m for the changes.

BlackRock, Franklin Templeton and Fidelity International are yet to confirm how they will respond to the regulation.