MiFID II: Firms can expect 'degree of flexibility' on complex issues but should not fall behind on the basics

'Zero tolerance approach' to more straightforward areas

Firms can expect a "degree of flexibility" by the regulator when it comes to the enforcement of MiFID II next year but there is likely to be a "zero tolerance approach" to the most straightforward areas, according to Linda Gibson, director of regulation and compliance risk at BNY Mellon's Pershing.

MiFID II, which comes into force in January 2018, outlines a host of product governance requirements to ensure the suitability of fund products for the end client. It aims to ensure transparency in the marketing of funds, costs and charges, as well as the communication of fund performance. While firms are cautious about how strictly the regulation will be enforced, Gibson said she expected a "degree of flexibility" by the Financial Conduct Authority (FCA).  Similarly, she said, it was "unlikely" there would be enforcement action if firms could demonstrate they had made their best e...