FCA queries industry on cost of MiFID II

Carmen Reichman

The Financial Conduct Authority (FCA) has sent out 4,600 letters to firms asking them how much it would cost them to implement European legislation the Markets in Financial Instruments Directive (MiFID II).

The regulator focused its cost-benefit analysis on the conduct issues within MiFID II, such as the recording of client conversations and the provision of independent advice. The analysis followed a discussion paper on the European rules published in March, which asked firms for their views on whether the European standards for adviser independence are different to the UK's. It also asked firms about recording all client conversations. Advisers could be caught in MiFID II 'appropriateness' testing under the rules, as a mooted widening of the definition of 'complex' products could force...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Regulation

The MP requested better understanding on what criteria the FCA is considering if these tests have been met and what information is needed for the FCA to adjust its view.

Nick Smith MP writes to FCA: 'Implement redress scheme for steelworkers'

Welsh MP Nick Smith has written to Financial Conduct Authority (FCA) chief executive Nikhil Rathi asking him to implement a consumer redress scheme for steelworkers.

Sophie King
clock 06 August 2021 • 3 min read
FCA wins Court of Appeal case against Avacade

FCA wins Court of Appeal case against Avacade

£91m transferred into SIPPs

Sophie King
clock 04 August 2021 • 2 min read
By making these changes, the FCA added, firms can now access the sandbox testing services at the right point in their development lifecycle.

FCA opens up regulatory sandbox

Can now apply throughout the year

Sophie King
clock 02 August 2021 • 2 min read