Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

My life after Mifid II: four wealth managers share their views

How has life changed under the new regulation and is it making things better or worse?

Billed as a landmark piece of regulation, Mifid II and the process for ‘being Mifid II-ready’ was on everyone’s minds in the run up to the regulation coming into effect earlier this year.

But what has really been the effect of the new rules and how is it changing wealth management businesses?

We asked four wealth managers what they think is the biggest change six months on.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Billed as a landmark piece of regulation, Mifid II and the process for ‘being Mifid II-ready’ was on everyone’s minds in the run up to the regulation coming into effect earlier this year.

But what has really been the effect of the new rules and how is it changing wealth management businesses?

We asked four wealth managers what they think is the biggest change six months on.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Neil Whelan, RC Brown 

'During the nearly six months since Mifid II came in to force, we have found the impact to our working life has periodically been significant, however the day-to-day changes are relatively minor.

'Leading up to 3 January this year, we were heavily involved in a number of projects related to the new regulations, for example ensuring our daily trade reporting process worked correctly.

'Now that this has largely been automated, we are able to regularly report a significant volume of transactions with no manual intervention. Overall, we have found that many of the operational impacts of Mifid II can be mitigated through the efficient use of systems in this manner.

'Looking to the future, the next challenge will be a move to quarterly reporting from our previous half-yearly schedule, while incorporating the amended costs and charges disclosures. As a part of this project we are looking to introduce electronic reporting for those clients who prefer this option and again this should serve to streamline the process, while adding useful online functionality for our clients.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Gavin Haynes, Whitechurch Securities 

'Since the implementation of Mifid II at the beginning of the year, the biggest change has been able to spend more time managing money! Whereas last year, it was a significant burden on resources ensuring  the implementation of Mifid II that I felt I spent much more time in meetings discussing inducements and ex-ante cost calculators than I did assessing funds and markets.

'This year it has been back to business and usual, although there were a few sweaty palms around the office when markets fell heavily in February, fearing the 10% drop may be triggered for higher risk portfolios (it wasn’t).

'One change will be that I will spend much of July writing reports now that we have to report quarterly. Given all our clients have access to daily online valuations, I am still to be convinced regarding how clients will benefit from the changes to reporting meaning they now have to receive a plethora of information every three months. I also don’t believe Mifid II has done anything to simplify product literature, which I believe is of utmost importance to encourage more people to invest.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Mark Parello, Raymond James 

'Mifid II hasn’t really changed the way we work. We have always had face to face reviews at least every six months and been super transparent with regard to fees, as we run low cost portfolios. If anything, because of our fee structure, the transparency has led to us winning more business.

'We now send valuations quarterly and the platform will take care of 10% drop notifications when they happen. While these and other task related projects has led to an increase in the cost of providing the service, these small changes have been easy to account for.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Patrick Keats, Albert E Sharp

'Now that we are through the “Implementation of  Mifid II” project the day to day impact is pretty negligible.

'We have maintained access to research and have always been transparent with respect to fees and  maintained responsibility for suitability with respect to our direct discretionary clients.'

 

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter