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Money Managers' Sales in Europe Under Threat From New Rules 

May 16, 2017

Sarah Jones, Bloomberg

Asset managers face a new headache as rules aimed at making financial markets fairer and more transparent threaten their ability to sell investment funds into continental Europe.

The “more onerous” regulations may encourage the banks and insurers that distribute these products to limit the number of fund managers they deal with, according to Schroders Plc. Under the MiFID II rules, which come into force next January, financial companies will have to document transactions in far more detail, raising concerns about a chilling effect on sales.

“It’s simply because of the practicalities of it,” Sheila Nicoll, head of public policy at Schroders in London, said in an interview. Distributors may start to say, “rather than dealing with 25 product providers, we are only going to deal with five,” she added.

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