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Mifid II: An overused acronym, but what does it mean for day-to-day IR? 

June 19, 2017

 Marina Zakharova de Calero, IR Magazines

"Mifid first came into our capital market lives 10 years ago. Since November 2007, it has been a primary reference point and the driving force of the EU’s regulation of the financial markets.

Ten years on and with the worst economic downturn behind us, Mifid’s next generation – Mifid II – is about to disrupt our working practices once again as it comes into force in January 2018. It is aimed, among other things, at unbundling broker commissions and this time it is far-reaching, more stringent, certainly means business and has significant cost implications.

It touches many aspects of the securities market, but there are two main areas of concern for IR teams. Equity research teams are expected to charge fund managers for each piece of research. If a fund manager can’t justify such a purchase, he/she is expected to pay out of his/her personal funds."

 
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