Pressure builds on platforms for urgent solutions to MiFID II '10% rule'

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...