Over 40% of American asset managers in a survey said Europe’s MiFID II regulations will affect them.
ITG, a brokerage and financial technology provider, found 43% of the firms expected a direct affect from MiFID II – the updated Markets in Financial Instruments Directive.
MiFID II applies to asset managers with operations in the EU – but may also impact asset managers who have sub-advisory agreements with EU investment managers or that sell and manage European mutual funds.
ITG polled more than 100 buyside professionals in North America with assets under management ranging from about $125 million (€118.6 million) to more than $1 trillion, with average managed assets of $47 billion.
However, the majority do not believe MiFID II’s rules about unbundling research payments to brokers apply to them, though 82% of the 100 North American firms surveyed planned to “fully unbundle all of their brokers globally”.
Nearly 60% of those surveyed planned to continue paying for research using commission sharing arrangements (CSAs), while 33% expect to use a combination of both CSAs and research payment accounts.
Eight percent plan to set up a new research payment account ahead of the MiFID II start date next year.
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