LONDON, April 3 (Reuters) - First State Stewart Asia, the
Asian equities arm of First State Investments, said it will no
longer bill the costs of broker research and advisory services
to clients, as it prepares for the launch of new regulations in
Asset managers and brokers in the European Union are being
forced to split up and price separately the services previously
offered together with trade execution in a bundle that was then
billed to the individual fund and its investors.
The move to 'unbundle' has already begun in Britain, but
will apply across the EU from January 2018 under the impending
Markets in Financial Instruments Directive II (MiFID II).
"First State Stewart Asia will compensate the providers of
research by making separate payments directly from their own
resources," it said in a statement on Monday.
"This change reflects what we believe is in the best
interests of the clients of First State Stewart Asia and will
help to meet the requirements of the changing regulatory
environment, in particular MiFID II."
First State Stewart Asia is one of a small number of firms
to confirm their intention to pay for research themselves,
including Jupiter Fund Management and M&G Investments,
the funds arm of insurer Prudential.
First State Investments is rolling out its approach on a
team-by-team basis, and would alert clients to any changes ahead
of the MiFID II deadline of Jan. 3, 2018, a spokeswoman said.
(Reporting by Simon Jessop; Editing by Greg Mahlich)