LONDON (Reuters) - Goldman Sachs Asset Management said on Monday it would pay for external research used by its European investment managers under new European Union rules due to go into force in January 2018.
The fund arm of Goldman Sachs (N:GS), which manages more than $1 trillion in assets, is the latest asset manager to say it will absorb costs for clients covered by the Markets in Financial Instruments Directive II, which start on Jan. 3.
Under the rules, asset managers must agree a fee for research provided by brokers and either pay for it themselves or pass the costs on to investors, after years when the cost was bundled together with other services including trade execution.
Most major asset managers that have set out their plans for Mifid II have said they will absorb costs.