Deloitte: MiFID II will give rise to EU 'squeezed middle'

Clamp down on retail products

Deloitte expects a "squeezed middle" to emerge across Europe's asset management industry, as MiFID II increases costs and reduces margins on retail products.

The company expects firms operating in EU countries to begin launching more non-complex products following the introduction of the Markets in Financial Instruments Directive II due to stricter sales rules surrounding complex products. Following a survey of 13 investment managers, representing assets under management of £475bn across Europe, Deloitte said some firms are even considering restructuring their existing complex products into non-complex vehicles, in order to bypass the regulation. It added that investment managers are also likely to increase their direct-to-client offerings...