Regulators have caused "organisational chaos" by providing fund managers with two entirely different transaction cost calculation methodologies with the introduction of MiFID II and PRIIPs, according to Fundscape.
The research house said the confusion has been caused by two conflicting instructions given to authorised corporate directors (ACDs) and compliance teams regarding the calculation of implicit costs, rather than the obvious explicit costs like SDRT, stockbroker commissions and the spread on the security. Under MiFID II legislation, which came into effect 3 January 2018, firms must only consider costs "which are not caused by the occurrence of underlying market risk". Advisers let down by MiFID II conflicting cost calculations - Fundscape As a result, market movements between the in...
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