With the directive coming into effect in the next six months, the choice is either to pay the costs to brokers themselves or pass the costs off to their clients. JP Morgan is adding to the list of other asset managers including Vanguard, Jupiter, M&G, and Aberdeen that said they will cover the research costs themselves.
Others, including hedge fund Man Group's stockpicking unit GLG, Janus Henderson and Schroders, said they plan to pass research costs on to clients. A JP Morgan Asset Management spokeswoman declined to give an estimate of how much its research costs will be.