MiFID II rules requiring fund managers to report forecast trading costs based on a fixed point in the day, including market movements, inflates true trading prices, a consultant has argued.
Since the implementation of the latest Markets in Financial Instruments Directive (MiFID II) regulation research has highlighted an increase in ongoing costs (OCF) reported on funds, due to ex-ante - or forecasted - transaction fees. Director at adviser consultancy, Plan Works, Nathan Fryer (pictured) said one of the reasons for this was that reporting was not a true reflection of trading costs but rather a reflection of regulation-approved calculation methods, used to calculate the expected (ex-ante) costs. This calculation involved the market movement between time of trade and time ...
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