First State Stewart Asia has decided to start paying directly for research, as the asset manager responds to the Mifid II requirements for different costs to be separated.
The fund house said that all broker-related research and advisory services consumed by the team would no longer be paid for from client-dealing commissions.
Instead, the firm has opted to make separate payments directly from its own resources. As part of this change it has introduced execution-only dealing charges.
The announcement comes as asset managers focus on reshaping their business arrangements in response to the Mifid II rules, which come into force next year.
As part of the FCA's implementation of these, investment firms will have to either pay for research directly or via the creation of research payment accounts (RPAs).
Last year the FCA said it expected the latter route to be much more common, adding: "Those who have already adopted best practices in line with our recent dealing commission review should be well placed to adapt to the operation of RPAs."
Commenting on its decision, First State Stewart Asia said: "This change reflects what we believe is in the best interests of the clients of First State Stewart Asia and will help to meet the requirements of the changing regulatory environment; in particular MiFID II."
