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Regulation

T. Rowe Price becomes latest to pay for research costs under MiFID II

T. Rowe Price Group will pay for third-party investment research used by its U.K.-based money manager, T. Rowe Price International, under new European rules.

The Markets in Financial Instruments Directive II goes into effect Jan. 3. It will require financial firms with business or clients in the European Economic Area countries to separate research and execution costs.

"T. Rowe Price has more than 500 investment professionals globally, including more than 250 investment analysts, and is well-known and well-respected for its internal global research platform," said Rob Sharps, co-head of global equity and group chief investment officer at the firm, in a news release. "In recent years, we have continued to invest in our alpha-generating capabilities around the globe by adding analysts focused on fundamental research, quantitative research, corporate governance, socially responsible investing and corporate access. The supplemental third-party research we receive complements our own proprietary research."

Mr. Sharps added the move has "ensured that our clients' best interests are protected while preserving our global collaborative investment process and our access to important third-party research."

A spokeswoman for the $927 billion money manager said further details are not being disclosed.