Members of the fee-based adviser network met in the Czech capital on Monday to discuss, among other topics, best practice and trends relevant to advisers based in Europe.
One attendee said that a contact had told him recently that MiFid II would be a ‘show stopper’ for some firms.
OpesFidelio co-founder James Pearcy-Caldwell said that “MiFid II will level the playing field” between firms charging opaque commissions and those operating a fee-based model.
The core objectives of the regulation, according to a March 2017 report from investment ratings and research agency FE, are to increase investor protection, encourage competition in financial markets, align the EU regulatory landscape and introduce supervisory powers.
“Providers and advisers will have to report charges to clients, as a percentage and value amount, which will show some clients, really for the first time, what they are paying for,” said Pearcy-Caldwell.
“This will shine a spotlight on the ‘ubiquitous 1%’ charge,” said OpesFidelio co-founder Clive Tutton.
However, while UK advisers had four years to prepare for similar changes under RDR, there was concern among the group that their European counterparts were not being given enough time to come to term with the changes and what they mean for their business models.
Chris Skelhorn, head of distribution at Novia Global, which sponsored the OpesFidelio conference, believes that MiFid II brings with it “massive opportunity” for members of the network and the international platform.
