Vontobel said it will not charge its customers for securities research as a result of the EU financial markets directive MiFID II.
MiFID II will come into force in 2018, requires among other things that financial service providers disclose their costs for research to the client and that they decide how these costs are to be covered.
Vontobel Asset Management has therefore made the decision not to pass on to clients the costs for research services for all funds and client mandates that are governed by MiFID II rules.
“This decision creates clarity for our clients and makes our cost structure more transparent. We also see an opportunity for the client to benefit from more focused research in investment decisions”, explains Axel Schwarzer, Head of Vontobel Asset Management.
This decision will result in additional costs in the low-single-digit millions of Swiss francs per year, which are already factored into the 2020 objectives published at the end of August 2017.