Royal Bank of Canada (RBC) has announced it is to launch a MiFID II-compliant research payment solution through a partnership with Commcise.
The deal with the commission management and research evaluation specialist will mean RBC clients will be able to place research funds in segregated Research Payment Accounts (RPAs) for buy-side clients.
RBC will hold RPAs on behalf of clients. Ensuring payments for research are made at the discretion of the buy-side firm, while Commcise’s technology will be available to provide broker-neutral management of the research payment process.
MiFID II will introduce new rules that require firms to separate their research costs from dealing commissions, either through using an RPA or by paying for research products directly. It also sets tighter rules on budgeting, reporting and controls for research spend.
Graeme Pearson, head of European equities at RBC, said: “Ensuring an un-conflicted and client aligned approach is essential. We are therefore setting up a specialist Research Payment Account team, managed independently from RBC’s traditional brokerage offering, to ensure the efficient and timely processing of research payment obligations for buy-side clients globally who are looking to address the needs of MIFID II.”