MiFID - Transparency of the Financial World (or Securities at least!!)
This was a good start but should it take still another 2 years!! Having eneterd into force in 2007, the initial version of the Directive on Markets in Financial Instruments (MiFID 1) imposed special rules on investment, aimed to better protect investors and offer them more transparent information. The second draft of the Directive (MiFID 2), passed in 2014 but not to be implemented until 2017, aims to address areas that remain opaque. This review applies to all financial instruments. So the directive will revolutionise the whole value chain, including design and marketing.
PwC Luxembourg met on Wednesday, 4 March, with 150 banking and asset management professionals during a conference dedicated to this new regulation.
On 13 May 2014, the European Council approved the update of the regulatory package MiFID 2. Among the measures that are to be implemented are the prohibition of commissions for independent consulting and portfolio management. In other words, independent advisors and portfolio managers will no longer be able to receive remuneration from persons other than their customers.
"Advisors will not receive commissions on the sale of products and will offer a diverse range of products to their customers," said Olivier Carré, partner, MiFID 2 Leader at PwC Luxembourg.
If MiFID 2 is not yet effective at European level, similar reforms have appeared elsewhere and provide an overview of the European landscape in the "mifienne" erain the distribution of financial services. In Europe, initiatives are underway: the United Kingdom and its "Retail Distribution Review", the Netherlands and Sweden. Switzerland and Australia have also not engaged.
"Reforms prohibiting the payment of commissions for independent investment advice and portfolio management services popping up everywhere. The challenge now is to standardise them," said Olivier Carré.
PwC has recently developed the "MiFID II Navigator", a technical solution to facilitate the introduction of new measures required by the directive. We are planning to create an interactive unbiased web-site to discuss and deal with similar issues accross all financial products and environmental issues - Clive Munn, MFTSE Affairs S.A.
