Avoiding the excessive regulation of MiFID II would be a boost to the UK’s financial services sector. However, keeping an eye on the US is key, because that is where the competition will come from, predicts Jon Moulton.
From the start of next year, the second iteration of the Markets in Financial Instruments Directive (MiFID II) will be implemented across the EU, however many nations there are still in the EU. Unless you make a living from extra bureaucracy, this is not a time for celebration.
In 2004, the original MiFID introduced 42 measures. The aim was to increase competition, improve consumer protection and create a single market across the EU. It was approved at the European Parliament Fisheries Committee of all places. Fast forward to April 2014, and the EU approved the son/daughter of MiFID - MiFID II. The offspring was bigger than the parent. The central directive is as long as the bible, with many secondary regulations. It provided interesting work for the UKs Financial Conduct Authority, totalling 1,398 pages of consultation papers. Good people will waste their lives trying to understand this stuff, (MiFID II, not the bible).
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