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Local authority mandates face retail reclassification under Mifid II 

January 29, 2014
Elsa Buchanan, Citywire

Local authority pension mandates could be reclassified as retail under Markets in Financial Instruments Directive II (Mifid) proposals.

The mandates, which include municipalities (councils) and local public authorities, could find their status switched to retail to provide better protection to the entities, if the MiFID II proposals go through in their current form.

‘Europe has been focusing on a very strict classification of categories and products,’ said Anthony Kirby, director of regulatory reform and risk management at Ernst & Young. ‘While UK regulators have already been looking into mis-selling and conduct risk for local authorities, this has not been the case in France or Italy yet, where local authorities, such as prefectures, are very small.’

Read more: Citywire


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