Eurizon, one of Italy’s largest asset managers, is to absorb the costs of securities research under the capital markets revisions known as MiFID II.
Massimo Mazzini, head of marketing and business at Eurizon, said the decision to absorb costs for external research rather than charge clients was “most in line” with the company’s vision and growth strategies.
MiFID II – the updated Markets in Financial Instruments Directive – means asset managers need to make broker research costs more transparent, whether or not the costs are absorbed or charged to clients.
In recent weeks it has triggered a flurry of firms who have had to state their position.
Eurizon is owned by Intesa SanPaolo, an Italian bank.
River and Mercantile, a UK firm with £31 billion (€35.16 million) of assets under management, also said it will absorb the cost of external research.
The company said the estimated annualised cost was expected to be between £1 million and £1.5 million, though this will be offset in part by a reduction in remuneration expense, leaving a net impact on profit of between £700,000 and £1.1 million.
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