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Biggest Mifid II challenge revealed 

May 16, 2017

Dave Baxter, FT Adviser 

A requirement for clients to receive personalised data about their funds will be the main source of problems for advisers seeking to comply with the incoming Mifid II rules, FE has warned. 

The research and ratings firm said the need for clients to be given “post-sale” data, such as fund costs and charges, would be more problematic than previously criticised requirements such as the need to inform clients in the event of a 10 per cent portfolio drawdown. 

In a white paper covering the Mifid II and Priips regulations, both of which are due to come into force next January, FE regulatory specialist Mikkel Bates said: “The post-sale reports will cause most problems, because they are client-specific and it’s not simply a case of taking generic fund data and passing it on.” 

Annual reports given to clients by advisers after the January 2018 Mifid II implementation will need to show costs, purchases and sales of funds, as well as client withdrawals or additions. 

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