26/10/2016
MiFID 2 to lead advisers to revise their models
After RDR, the MiFID 2 directive will incite independent financial advisers (IFA) to revise their business models. More than half (52%) of British financial advisers estimate that additional regulatory requirements related to the introduction of the directive will encourage advisers to revise their models in order to improve their efficiency, according to a study by Investec Wealth & Investment. One adviser iout of five, however, states that the directive will have only a very limited impact on their activities.It is very likely that advisers will first begin by revising their compliance functions (52%) in order to align them with the requirements of the directive, and then focus on the structure of their pricing (42%) in order to make it more legible and transparent, the study says. One adviser out of four is expected to reduce exposure to grey areas by revising coverage of professional risks, while nearly one third are planning to outsource client portfolios to discretionary managers.These developments come a ta time when advisers are now beset with another considerable problem, as the consequences of Brexit have driven clients to focus more on their portfolios and to request advising about means to protect their investments from post-Brexit volatility.
