Advisers have questioned whether the incoming MiFID II rule requiring a client to be notified when their investment falls, will be of use to the client and worth the cost of implementation.
The new rule, due to be implemented as part of the second Markets in Financial Instruments Directive (MiFID II) regulation in January 2018, means clients have to be notified within 24 hours if their portfolio falls by 10% or more. Speaking at a roundtable hosted by Smith & Williamson, Delta Financial Management director Jarrod Ellis said: "Firstly we need to consider what the cost will be to put a system in place to notify clients of any drops. Secondly, considering a 10% drop has happened just four times since the war, is it actually of benefit to notify clients after the event has happ...
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