The key parts of Mifid II that are making the buy-side uncomfortable are the regulation's impact on how they pay for sell-side research, fixed income trading the demise of commission payments for financial advisers and new reporting requirements and investor protection measures.
What next for the industry? Tony Kirby, executive director in the Mifid team at EY, the consultancy, estimates that about a quarter of fund houses are scrambling to be ready for the directive, while about a fifth are well prepared. The bigger fund houses are in the best position as they tend to have large regulatory teams. But smaller houses are finding it tough to get ready for the January 2018 deadline, not least because of the cost and complexity of the rules. For the smaller companies the next 11 months will be crunch time, says Mr Tuffy.