Aberdeen Standard absorbs Mifid research cost

Aberdeen Standard Investments, the investment arm of the recently-merged mega manager, has confirmed it will absorb research costs once Mifid II come into force early next year.

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The investment branch of the newly-created Standard Aberdeen manages more than £583bn and will take on the cost of research rather than pass the extra cost on to clients.

It joins a growing list of asset managers that have also pledged to shoulder research costs once the new financial regulation comes into force.

In a statement the firm said external research was an “important and valuable input”.

It said: “This follows a comprehensive review that extends the approach taken by Aberdeen Asset Management earlier this year to the newly combined entity.

“It demonstrates one of the immediate scale benefits from the merger by applying the highest standards towards research for the benefit of all our clients across the globe.”

Mifid II gives firms the choice to pass the cost of research and analysis bought from brokers or banks on or cover it themselves.

The new rules mean from January 2018, firms selling research will have to invoice separately for the work they do for clients and the industry has been split over how best to confront the issue.