Legal experts poke holes in the first delegated acts under Mifid II
The extensive transparency requirements
included in the first level II measures under Mifid, known as
the delegated acts, could see some service providers forced to
leave the market, legal experts have warned, amid a raft of
issues cited as key demands for firms.
Legal experts in the financial market have
identified issues across the board in the Mifid II delegated
acts after the European Commission released the first
wave last Thursday, with lawyers pointing out that ensuring
adherence to the standards will prove challenging for many.
"There are extensive disclosure and
transparency obligations around commissions which will apply to
all categories of clients. The impact of these measures - which
are more restrictive than UK rules under the RDR - will likely
be the exit of certain service providers from the industry
given the difficulty in generating income from client charges
versus operating a business model where the firm is remunerated
through commissions," said John Ahern, partner at law firm
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