T. Rowe Price Group has become the latest firm to say it will pay for broker research in Europe under revised capital market rules.
The US firm has a London-based firm, T. Rowe Price International, which will self-fund securities research from January 3, 2018, when the EU’s revised Markets in Financial Instruments Directive, known as MiFID II, becomes effective.
T. Rowe’s decision puts further pressure on other firms to either pay for research, or continue to charge clients under new MiFID II arrangements.
Last week, JP Morgan Asset Management also said it would pay for research out of its own pocket rather than bill clients.
Rob Sharps, co-head of global equity and group chief investment officer at T. Rowe Price, said the firm used third-party research to supplement its own internal research provided by over 250 analysts on its staff.
“With this decision, we have ensured that our clients’ best interests are protected while preserving our globally collaborative investment process and our access to important third-party research,” he said.
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