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...
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