NCI: Why MiFID II issues for the UK need reviewing in light of Brexit

Conflicts between regulations

NCI: Why MiFID II issues for the UK need reviewing in light of Brexit

Jonathon Read, head of policy at regulatory think-tank New City Initiative (NCI), questions what the impact of Brexit will be on MiFID II regulations and UK asset managers' ability to compete on a global scale.

Here at NCI we would like to see the UK use the departure from the EU as an opportunity to adjust the regulatory environment, making it clear, proportionate and aligned with providing genuine value for clients, avoiding moral hazard and unintended consequences. One issue that is of particular focus for our members is MiFID II, especially its provisions that ban the buy-side from using dealing commissions to remunerate brokers for research. It strikes us that such a directive would introduce inconsistencies and hamper UK firms' ability to compete internationally, which is a key focus o...

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