Discretionary fund managers (DFMs), advisers and investment platforms are facing renewed pressure to draw up new contractual agreements and finalise the details of how they will work together to implement the "challenging" MiFID II '10% rule', in time to meet the implementation deadline of 3 January 2018.
The legislation requires firms providing portfolio management services to inform clients by the end of the working day when the value of their portfolio declines by 10% or more during a reporting period, creating uncertainty about responsibilities across the distribution chain, particularly when DFMs are running model portfolios on platforms and do not know the identity of their end clients. However, director of regulation at the Personal Investment Management & Financial Advice Association (PIMFA) Ian Cornwall warns there is no doubt about the obligations on DFMs under the new regulatio...
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