Government looks to abolish 10% drop notification

'Conditions were hinderance'

Sophie King
clock • 3 min read

The government has set out plans to consult on the 10% drop notification as part of changes to the Markets in Financial Instruments Regulations II (MiFID II).

In a memorandum to parliament, the government said the instrument amends an existing requirement for investment firms to inform their clients whenever the overall value of a portfolio decreases by 10% in a given period. "Feedback from professional clients has been that having these reports every time their portfolios depreciate by multiples of 10% is not useful to them," the memorandum said. "They and investment firms would prefer to be allowed to agree between them what reporting is appropriate based on their specific circumstances. "The instrument therefore revokes this obligation i...

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

Professional Adviser TV: Remaining client centric in a time of increased regulation and digital demands

Professional Adviser TV: Remaining client centric in a time of increased regulation and digital demands

Kevin Bailey and James Sullivan also unpack what value looks like

Professional Adviser
clock 04 July 2025 • 1 min read
Targeted support: FCA shuns 'overly prescriptive' approach to vulnerability

Targeted support: FCA shuns 'overly prescriptive' approach to vulnerability

Considered prescribing how firms should support ‘vulnerable consumers’

Isabel Baxter
clock 30 June 2025 • 2 min read
Targeted support: 38,000 current advice users expected to switch

Targeted support: 38,000 current advice users expected to switch

Firms could generate up to £499 in revenue per customer

Isabel Baxter
clock 30 June 2025 • 4 min read