MiFID II will have multiple impact areas for both product manufacturers and distributors, affecting governance, controls, operations, technology, infrastructure and client/partner relationships. For the investment industry and its distribution network it can be divided into two key parts:
The regulations usher in a new era of market and infrastructure transparency, and with it a more consistent
application of reform across Europe, along with an extension of scope from the original MiFID equity coverage to
include non‐equity markets such as fixed income and OTC derivatives.
New pre- and post‐trade reporting, along with T+1 transaction reporting, will become mandatory and will lead to
new publication entities emerging as authorised APAs (Approved Publication Arrangements) to support near real‐
time, post‐trade reporting. T+1 transaction reporting will operate either directly through the local National
Competent Authority (NCA) or via an authorised Approved Reporting Mechanism (ARM).
MiFID II aims to remove conflicts of interest that arise through commission payments and inducements, with
greater transparency on the use of client money.
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