New York
06 January 2017
Reporter: Mark Dugdale
NA asset managers will unbundle ahead of MiFID II
A staggering 82 percent of North American asset managers plan to fully unbundle all of their brokers globally, despite many not expecting the EU’s Markets in Financial Instruments Directive (MiFID) II to directly affect them, according to an ITG survey.

MiFID II, which is scheduled to come into force in Europe on 3 January 2018, applies to asset managers with operations in the EU, but the directive could also affect those that have sub-advisory agreements with EU investment managers, or that sell and manage European UCITS funds.

MiFID II will not directly affect 43 percent of North American asset managers, said ITG’s survey of 100 buy-side professionals.

The directive requires asset managers to explicitly separate their trading commissions from investment research payments, prompting 82 percent of survey respondents to say they would unbundle their broker relationships globally, despite many not expecting a direct MiFID II impact on their businesses.

Some 59 percent of respondents said they plan to continue paying for research using commission sharing arrangements.

Commenting on the survey findings, ITG’s head of global commission management, Jack Pollina, said: “MiFID II is going to have a significant impact well beyond the shores of Europe, as institutional investors require asset managers to change the way they budget, fund, price and pay for research. North American firms are anticipating these changes and are taking steps now to adapt to the shifting expectations of their end investors.”

More custody news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Record AuC figures for BNY Mellon
21 July 2017 | New York | Reporter: Stephanie Palmer
BNY Mellon recorded record levels of assets under custody and administration in Q2 2017, reaching $31.1 trillion
Mirae Asset Securities chooses BNP Paribas for global custody
13 July 2017 | New York | Reporter: Stephanie Palmer
Mirae Asset Securities (USA) has selected BNP Paribas Securities Services to provide it with global custody
Custody not a commodity
28 June 2017 | Warsaw | Reporter: Stephanie Palmer
Viewing custody and clearing as a commoditised industry could be putting pressure on pricing and threatening the industry, according to speakers at The Network Forum
BNY Mellon and Australian financial service provider One Investment Group are joining forces to offer global custody services to Australian fund managers, trustees and responsible entities
€50 billion mandate win for Caceis
27 June 2017 | Rome | Reporter: Stephanie Palmer
Caceis has been selected to provide custody, depository, fund administration and transfer agency services for Amundi SGR, the Italian subsidiary of the Amundi Group
Clients demand innovation in custody
22 June 2017 | New York | Reporter: Stephanie Palmer
Custodians must embrace new technologies if they’re to survive in the digital age, according to a survey of sell-side executives by BNP Paribas Securities Services and TABB Group
J.P. Morgan buys office space in Dublin
16 May 2017 | Dublin | Reporter: Mark Dugdale
Capable of accommodating 1,000 staff, it will give the bank flexibility across the EU as the UK prepares to leave
More custody news