Examining the business implications of MiFID II
The immediate focus for managers is on the cost of compliance – the impact of the reporting that is going to be required under MiFID II.
Fund managers have been under a lot of scrutiny, feeling the impact of various new regulations over the past years, and now MiFID II is coming. In the medium to long-term, the key issue that MiFID II raises is what the distribution model in Europe will be.
There are questions surrounding the execution and suitability of products visa- vis clients that affects both asset managers and distributors. Managers do need to be clear on the definition and suitability of products for the end investors and advise distributors accordingly.