SOMETHING FOR THE WEEKEND
MiFID II
I’m not quite the enthusiast for the European Union I once was. I’m as exasperated as any other UK tax payer at some of the things it spends our money on. But I am frustrated at the lack of serious debate on some of the issues involved, especially with that all-important referendum on Britain’s membership due in the next two years.
An example is MiFID II, and if that means nothing to you, I’m not surprised. It’s had very little coverage in the mainstream UK media. In short, MiFID II will replace the original Markets in Financial Instruments Directive, which was introduced in 2007. Fundamentally, it will provide much greater protection for consumers. Fund management companies will need to be much more transparent; in particular they will have to report all fees and expenses, including a best estimate of underlying transaction costs.
The fund industry doesn’t much like MiFID II. Realistically, it knows that reform is inevitable, so until now, Europe’s fund industry trade bodies, led by Britain’s Investment Association, have focused their efforts on watering down the legislation. Now that a framework agreement is in place, the industry has shifted its strategy to one of constant delaying tactics.
What you may have missed..
Could any other industry get away with this?
Why financial planning is so important
Active investors really need to hit the jackpot
The basic arithmetic the fund industry ignores
The stats from Europe look very bad for active managers
What I’ve been reading..
Passive, active & “Moneyball” investing (Marc Gerstein)
The market is much bigger and noisier than we expect (Adam Grimes)
The most important thing a financial adviser does (Eric Nelson)
Those smartphone stock market apps are a bad idea (Shlomo Benartzi)
Market inefficiency is not an argument for active management (Larry Swedroe)
How to improve the hedge fund industry (Ben Carlson)
Study shows women trade less & accept more assistance (Josh Brown)
How our perception of time affects our investing (Wesley Gray)
Finally..
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Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
