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...

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