MiFID II prep to cost firms £1.6bn, says report

Surveyed investment banks and asset managers

Preparations for the introduction of the Markets in Financial Instruments Directive II (MiFID II) could cost Europe's financial institutions a total of $2.1bn (£1.6bn) next year, according to a report.

A report by IHS Markit and Expand, a Boston Consulting Group company, said the slew of market reforms due to be introduced in January 2018 will require firms to spend much of next year preparing for a new regulatory landscape. The study claims the top 40 global investment banks and top 400 global asset managers are expected to spend $2.1bn in total to meet MiFID II's guidelines in 2017, with each side of the industry likely to spend in excess of $1bn. The report said costs are likely to increase particuarly next year because of a lack of available information around what firms will ne...