Three key compliance challenges for MiFID II Product Governance Rules

Rob Swan, managing director - data services at Calastone Data Services, takes a closer look at how fund managers can monitor their distribution chains under new regulations.

One clear change administered by the forthcoming MiFID II regulations is that, for the first time, fund managers will be required to understand and monitor their distribution chain down to the level of the end distributor level (or one level up from the end investor). This marks a significant shift to current distribution structures where responsibility for understanding where funds are sold sits solely with the distributor and not the manufacturer. Such a fundamental change highlights the current deficiencies that exist in the distribution model, where most fund managers simply do no...