Eurizon, specialist asset manager of the Intesa Sanpaolo Group, has announced it will absorb research costs associated with the implementation of Mifid II.
The Directive requires transparency around such costs, so that they can be identified and separated from transaction costs. Investors will know how much is being paid for research that they may use to make investment decisions. For asset managers there is no explicitly prescribed option to follow, but they can choose themselves whether to demand customers pay the cost, or absorb it into their own balance sheet, Eurizon notes.
Massimo Mazzini (pictured), head of Eurizon`s Marketing and Business Development Department, said: “As active asset managers, we believe that research plays a central role in generating new ideas and we continue to use both analyses created internally and research produced externally, to update and improve the entire investment process and to be able to offer the best solutions to customers.”
“We think that the new legislation is going in the right direction and that the approach adopted by Eurizon enhances the quality of the service provided to customers. Therefore, we have decided to absorb the costs associated to external research to keep the level of quality and value unchanged for all our investors, by avoiding charging these expenses to the managed assets. We deem that this approach is the most in line with our vision and growth strategies.”