MiFID II: Seven key implications for asset and wealth managers
By , 5 Jun 15
EY’s seven ways MiFID II will affect asset and wealth managers
Despite the UK Retail Distribution Review implementing strict client suitability requirements on advisers, MiFID II requirements have tightened the rules for firms around suitability reports, provision for periodic suitability assessments and appropriateness tests for complex products.
Additionally, stricter conditions for being “independent” advisory firms will be introduced, including taking account of a proportionate number of products from a wide cross-section of firms who have no indirect or direct relationships with the distribution firm.
Firms will also have to provide a clear rationale for recommending a certain product over others available in the market within its suitability report, which should also include product costs and charges comparisons.
