River and Mercantile (“R&M”) has announced that it will absorb the cost of research through the income statement following the implementation of MiFID2 on 1st January 2018. This will add £1.0-1.5m of extra costs which were previously borne by the funds. The PBT impact is lower, £0.7-1.1m, with some of the extra cost prompting a reduction in the remuneration expense. This does not have a material impact on forecasts: 1-3% on the remainder of FY18e and 2-4% in outer years. We reiterate our BUY rec ....
19 Dec 2017
N+1 Singer - River and Mercantile Group - Research costs to be absorbed under MiFID2, not a material impact
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N+1 Singer - River and Mercantile Group - Research costs to be absorbed under MiFID2, not a material impact
- Published:
19 Dec 2017 -
Author:
Andrew Watson -
Pages:
3
River and Mercantile (“R&M”) has announced that it will absorb the cost of research through the income statement following the implementation of MiFID2 on 1st January 2018. This will add £1.0-1.5m of extra costs which were previously borne by the funds. The PBT impact is lower, £0.7-1.1m, with some of the extra cost prompting a reduction in the remuneration expense. This does not have a material impact on forecasts: 1-3% on the remainder of FY18e and 2-4% in outer years. We reiterate our BUY rec ....