Survey Reveals Investment Managers' Greatest Challenge with MiFID II

Jan 31 2018 | 1:09am ET

Close to 50% of investment managers and consultants surveyed at Northern Trust’s annual Regulatory and Depositary conference cited client reporting as the greatest implementation challenge presented by MiFID II.

The survey of more than 100 attendees at the annual London event held in November focused on the regulatory demands faced by fund managers who noted further MiFID II challenges including: transaction and transparency reporting (approximately 20%); inducements and research (approximately 20%) and updating client documentation (about 15%), according to at Northern Trust.

“The level of focus on client reporting was no surprise to us,” said Robert Angel, head of regulatory solutions at Northern Trust, in a statement.

“The transaction cost calculation disclosures contained within the Markets in Financial Instruments Regulation (MiFIR) are complex and will require ongoing work, even now post implementation, not only from institutional entities, but also from regulatory bodies as they look to further rationalize the relevant disclosures,” he said.

In addition to concerns around MiFID II, the survey revealed that 65% of attendees expect the upcoming regulatory environment will demand an increasing amount of their time in 2018, compared to 2017. 

Northern Trust Corp. is a provider of wealth management, asset servicing, asset management and banking to corporations and institutions. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2017, Northern Trust had assets under custody/administration of US$10.7 trillion, and assets under management of $1.2 trillion.

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