Small-cap managers say MiFID II has made them worse-off

'Detrimental impact' on liquidity and demand

Sophie King
clock • 1 min read

One year on from the implementation of MiFID II, a survey of fund managers and mid and small-sized companies has found the new regulation has had a perceived "detrimental impact" on demand and liquidity for smaller stocks.

The survey, commissioned by broker Peel Hunt and The Quoted Companies Alliance, found almost three-quarters (70%) of the 102 fund managers questioned said their access to research providers had decreased as a direct result of the regulation. More than half (56%) meanwhile believed they were worst off as a result. Of the 105 UK quoted companies also surveyed, one quarter (25%) said the second iteration of the Markets in Financial Instruments Directive (MiFID II) had had a negative impact on their business. Furthermore, two-fifths of businesses (41%) and almost two-thirds (63%) of the p...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Verve flags adviser hesitance over compliance switching

Verve flags adviser hesitance over compliance switching

Launches guide

Jen Frost
clock 06 February 2026 • 2 min read
Navigating FCA skilled person reviews, remediation, and past business reviews

Navigating FCA skilled person reviews, remediation, and past business reviews

Risk of s166 review has 'never been more significant'

Marjolaine Quirke
clock 05 February 2026 • 2 min read
FOS complaints at lowest level in two years

FOS complaints at lowest level in two years

‘The data points to a system in transition rather than recovery’

Jenna Brown
clock 05 February 2026 • 3 min read