The UK referendum vote to leave the European Union has brought plenty of questions and few answers regarding the plan, timing, and potential outcomes of the UK’s withdrawal.One area of significant interest, however, is the implementation and UK authority of new MiFid ii (Markets in Financial Instruments Directive), as defined by the EU and implemented in the UK by the FCA (Financial Conduct Authority). On June 24, 2016 the FCA clearly stated: “Firms must continue to abide by obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.” Many of our customers are thus creating and publishing IRR (Investment Research Reports), and changes to the long-standing investment research business model are required by a section of MiFid ii. In April 2016, a draft Delegated Directive defines the requirements related to Inducements (Chapter IV), the goal of which is to remove the potential for a conflict of interest between investment research, investment opinion, and the funding of investment research through commissions on trades. Read more about the Brexit debate:
- A 500-word summary of the short and long-term Brexit business implications
- Will Brexit mean the end of entrepreneurship?
- We’ve jumped off a cliff and need to build a parachute on the way down
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