Aberdeen Standard latest firm to absorb fund research costs
By David Thorpe
Aberdeen Standard Investments has this morning (12 September) joined a raft of other fund houses including Vanguard in announcing it will absorb fund research costs.
The decision comes in light of Mifid II regulations which prohibit fund houses from charging clients for research unless it presents the end investor with a clear budget as to the cost of that research.
The regulations come into effect on 3 January, and it is from that date Aberdeen Standard Investments will absorb the fund research costs.
The company said Aberdeen Asset Management had begun to work on a model to allow it to do this, and this has been adopted by the new entity created in light of its merger with Standard Life.
The company said this initiative demonstrates the benefits of the merger, as it allows for cost savings to be achieved through economies of scale, and enable it to absorb such costs.
Aberdeen Standard Investments said it regards external research as "an important and valuable input to our exceptional in-house research capabilities and we remain committed to our portfolio management teams' ability to maximise active research insights across regions and asset classes for the benefit of all clients".
David.Thorpe@ft.com
Investments Regulation Abrdn Vanguard Aberdeen Standard Investments