MIFID II - Impact to date and long-term consequences

MiFID II, one of the most discussed and debated regulations in the financial services sector. A key goal was, to separate financial research from execution. MiFID II should increase transparency, and ultimately, lower the costs for clients in asset management.

While supporters argue that the 18 month old regulation boosts household participation in financial markets, opponents reason that it will strongly reduce the availability of investment research, in particular for niche securities such as small stocks. 
In our seminar, we came together to discuss the impact of MIFID II to date, focusing on the following questions:

 

• How has the separation of costs from financial research and execution affected the industry overall (both buyers/sellers)? 
• How does the buyside value investment research? Why does it appear to be so difficult to put dollar values on investment research? Has the way the buy-side looks at research as a product changed?
• Do we have evidence that investment research is neglecting certain securities such as small stocks? Is it plausible that MiFID II will lower the efficiency of market prices for some securities?
• How are clients responding to the new regulation? Are there any indications that increase in transparency has created value for clients of asset management services?

Presentation of MiFid II by: Michael Halling, Associate Professor of Finance, SSE.


Followed by intros and panel discussion with:

Urban Funered, CEO at Swedish Securities Dealers Association.
Christer Linde, Co-Head of global research and quantitative analyst, ABG Sundal Collier.
Henrik Didner, Owner, D&G Fonder.

The seminar was be held in English and was moderated by Sara Ottosson, Swedish House of Finance.