Numerous asset managers have now declared how they intend to treat research costs under new EU rules, but analysts have suggested those that pass on costs to investors could be at a disadvantage.

Under Mifid II, the wide ranging EU legislation which comes into force from January 2018, asset managers will be forced to overhaul how they deal with investment research. They must either pay for it themselves or create specific structures within their business that allow them to pass on the cost to investors.