M&G Investments has become one of the first major UK asset managers to split trading and research fees, one year before Mifid II rules will make it compulsory across the industry.
The asset manager sent a letter to brokers at the start of the year stating it would only pay brokers for the cost of executing trades and would buy research on an a-la-carte basis, according to Bloomberg, which spoke with a person who had received the letter.
The Mifid II regulations come into effect on 1 January 2018.
An M&G spokesperson confirms they have written to brokers to remind them that they are no long charging the cost of equity research to their funds and their holders, which has implications for billing and payment methods.
The decision was made before the detail on the EU legislation was known, the spokesperson says.
According to Bloomberg, M&G is the first major UK firm to split research and trading costs.