MiFID II will have a “mildly negative” effect on the sale of third-party funds in Europe, cross-border firms expect.
The majority of 95 firms surveyed – 54% – said sales would be unaffected, though just over a quarter (27%) said sales would fall slightly, Cerulli Associates research found.
Only 4% said sales would fall significantly and just 4% again said sales would increase, albeit only slightly.
“It is remarkable that, although MiFID II promises to promote transparency, accountability, co-operation across the distribution chain and empower end investors, practically no one believes that it will benefit third-party fund sales, which is the healthier part of the industry,” said Angelos Gousios, director of European retail research at Cerulli and lead author of the report.
Gousios also said it appeared that once MiFID II comes into effect in January 2018, it will be “more difficult to position third-party products with fund selectors, because they will prefer fewer players”.
Cerulli tells asset managers to “focus on the positives” of the new regulation, such as the opportunity to use the enhanced exchange of data with distributors to gain more clarity with regard to their clients, their investors, and the role their funds play in portfolios.
The report is called ‘European distribution dynamics 2017: Managing complexity as opportunities evolve’.
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