View more on these topics

Mifid II forces firms to show total investment costs

Financial firms will have to disclose total investment costs to consumers after the Markets in Financial Instruments Directive II was passed into law.

The EU announced this week that it had made Mifid II part of European law, which included a requirement to report total costs of investments to consumers.

Member states will have to comply by 2016 and the rules cover investment managers, discretionary managers, private client wealth managers, platforms, financial advisers and all other financial intermediaries.

The regulations require the costs to be set out in an understandable format and include all costs that affect investors.

True and Fair Campaign head Gina Miller says: “While the UK’s trade bodies remain determined to produce empty rhetoric and ineffective voluntary codes, the EU has taken the lead and brought in regulation set to end the shameful anti-consumer practices that have prevailed for decades in UK financial services.”

PMI Independent Financial Advisers director John Stewart says: “These kinds of things need to be presented simply and easily for clients to understand. 

“I think it is a step in the right direction and should not take too much work for firms to put together.”

Apfa and the Investment Management Association have previously raised concerns that certain aspects of Mifid II are at odds with other European regulations, in particular rules on packaged retail investment products.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com