Asset managers are at risk of seeing significant business losses as a result of delays in their delivery of new data to distributors, as is required from them under impending MiFID II rules, which could lead distributors to remove their funds from sale or even terminating relationships.
MiFID II, which comes into force on 3 January 2018, requires asset managers to hand over large volumes of data to their distributors, which can refuse to sell investment funds and structured products without the necessary information. Distributors have urged asset managers to prioritise efforts to deliver the new data, which covers fund costs and "target market" information, relating to the risk profile of the target investor, their relative sophistication and their ability to bear losses, or risk losing fund sales, according to a report in the Financial Times. Global head of business...
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