Verena Ross, executive director at the European Securities and Markets Authority (ESMA), has said the impacts of MiFID II on businesses are “difficult to predict”.
Speaking at a conference in Norway, Ross explained to delegates that ESMA understands that “many of you, at the business side, are concerned about how this will impact your business model.”
She asserted a well-functioning intermediation process ensuring financial instruments find their way into the portfolios of asset managers and investors.
“MIFID II very much recognises that this process is still distorted and further improvements are needed in the way investment advice on financial instruments is provided,” she explained.
She added that she is convinced the regulation is an important step in the interest of investors.
Ross then considered whether there will be new market entrants in the new environment, or products and services embracing the regulatory principles, “or perhaps trying to circumvent them?”
“I think it is quite likely that some of the advice will become more standardised and generic and as such hopefully contribute to lower costs for investors,” she added.