MiFID II… second album syndrome or
regulatory game changer?
Has MiFID II built on the success of the first directive or does it fall short in comparison to its predecessor?
MiFID II a guide for financial advisers
What's the story with MiFID II?
Nevermind the first iteration of MiFID, MiFID II is the latest swathe of regulation that is currently giving financial services the bends. Getting to grips with the colour and the shape of this sprawling directive takes time and lots of planning. Let's begin with the warning, those who doolittle will find that after 3 January 2018 modern life is rubbish.
If you are paranoid about a late registration for an LEI or how the new client reporting rules will affect your business then we have all the information you need for your discovery and planning for a post MiFID II world.
What is MiFID II?
The MiFID II (Markets in Financial Instruments Directive II) came into force on 3 January 2018. MiFID II covers a broad range of issues and delving into the directive in more detail reveals that there is a substantial impact on adviser firms and individuals who are involved in the buying or selling of financial instruments.
MiFID has been around since 2007 and much of UK financial regulation comes from it, it provides the framework regulation for how investment services and financial markets operate within the European Union (EU).
MiFID II aims to dramatically reduce the risk of market abuse, strengthen investor protection and increase the efficiency of financial markets. It covers a broad range of issues, but we have focused on those which are most likely to affect you as advisers.
Manufacturers and distributors
MiFID II will categorise all financial institutions/firms as either a manufacturer or a distributor. These are broadly defined as:
- Product manufacturers – firms that create, develop, issue and/or design investment products. Fund mangers and DFMs will fall into this category
- Product distributors – firms that offer and/or recommend investment products and services. Platforms and advisers (who do not have discretionary permissions) will fall into this category
Watch the replay of the MiFID II webinar with Phil Young
Nucleus' most recent white paper, MiFID II - a guide for financial advisers has been prepared in partnership with Phil Young of Zero Support.
On this webinar Phil discusses the white paper and the context and purpose of MiFID II, how the FCA plan to interpret and apply it to the UK and how it will affect advisers, and what actions they will need to take to meet the changes in this legislation.
MiFID II issues for advisers to consider
Adviser action tracklist
MiFID II articles on Illuminate
What about Brexit?
What the impact of Brexit will be on the industry as a whole over the coming years is yet to be determined however it will have little or no impact on the MiFID II directive. The FCA’s stance is:
‘Following the result of the UK’s referendum on its membership of the EU, firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for MiFID II and other pieces of EU financial services legislation that are due to come into effect in the UK”