UBS is said to charge about US$40,000 for basic MiFID research

[LONDON] UBS Group AG is proposing to charge clients about US$40,000 a year to access basic equity research once new regulations known as MiFID II come into effect in January, according to people with knowledge of the matter.

The research pricing, which is currently being negotiated, is still subject to change and will vary widely depending on the size of the firm purchasing the package, the people said, asking not to be identified because the information is private. For about five users, the cost may range from about US$35,000 to US$45,000 and clients will have to pay additional fees depending on the level of service, frequency of usage and calls or meetings with analysts, the people said.

UBS negotiates pricing and service on a client-by-client basis, a spokesman for the bank said by email.

The European Union's updated Markets in Financial Instruments Directive comes into force from Jan 3 and requires money managers to separate the trading commissions they pay from investment-research fees.

Banks and asset managers are rushing to agree on prices ahead of the regulations, which are being introduced to help boost returns for clients of the firms.

Research prices are varying widely depending on the level of service clients choose. Barclays Plc's clients may have to pay as much as £350,000 (S$618,714) to get the top service package from its equities analysts, according to a pricing document seen by Bloomberg News.

Macquarie Group Ltd's sell-side unit in the UK is proposing fees of US$25,000 to allow five users to access the firm's equity-research portal and JPMorgan Chase & Co is proposing to charge as little as US$10,000 a year, the lowest price to emerge so far.

BLOOMBERG