With the Markets in Financial Instruments Directive 2018 or ‘MiFID II’ regulatory framework reaching the year mark since its inception, it is interesting to look back at a move that many thought would bring substantial changes for the asset management industry.
It appears that several pre-MiFID II attitudes, such as assigning a value on research after consuming it, have not changed. Furthermore, asset managers were expected to become more transparent with regard to the unbundling of research, and reveal both their research costs and how they are paying for them.
However, a spot poll of 30 senior European financial services sector executives by ReachX finds that:
• Majority (65%) were largely unprepared in 2018 for the massive changes the framework demands.
• Some asset managers complained of “confusion” and lack of clarity.
• It may take up to 5 years for regulations and implications of MiFID II to be widely visible across the asset management sphere.
• Regulatory authorities across Europe have adopted a soft touch approach choosing not be too zealous in enforcing penalties.
• While some respondents (20%) welcomed the regulators’ attitudes, majority said the soft touch approach had contributed to the slowdown in wider MiFID II framework adoption.
ReachX’s has compiled an exclusive guide looking at the implications of MiFID II for issuers, asset managers and research houses as the new regulatory environment is being redefined. To download your free copy click here.
