Regulation Nightmare: EU’s MiFID II

While this is only in Europe, many have been talking about it. Personally there is no way I would pay for research if we traded at a firm as well. To a degree this is avoidable, as shown below. JPM will absorb the costs and make them a soft dollar sale product.

To borrow from the FCA: The Markets in Financial Instruments Directive is the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. LINK

Market Chatter: JP Morgan Asset Management Plans to Absorb Research Costs Due to New Regulation - 12:18 PM EDT, 08/11/2017 (MT Newswires) -- JP Morgan's (JPM) asset management unit plans to absorb the cost of research from brokerages rather than pass them on to clients after new European Union regulations come into force in less than six months, Reuters reported. The new rules will require brokers to charge fund managers for research they provide separately from trading services, according to the report. Vanguard, Jupiter, M&G and Aberdeen have also said they will pay research costs themselves, while hedge fund Man Group's stockpicking unit GLG, Janus Henderson and Schroders, said they plan to pass research costs on to clients, the report added. JP Morgan shares were 0.6% lower on Friday afternoon. Price: 91.67, Change: -0.52, Percent Change: -0.56