MiFID II is an important and key regulatory game changer for the investment fund and capital market industry; it will transform how investment management activities are regulated, performed, overseen and reported to regulators.

Five key areas where MiFID II will impact your business:

  • Business Model
  • Distribution Channels
  • Compliance
  • Products
  • Profitability

European Capital flows are expected to continue their upward trajectory despite sluggish global growth concerns and the diminishing of monetary easing polices. Continuing the trend of last year, 2017 is expected to see continued strong inflows of capital from domestic and international investors into European bespoke investment strategies.

DMS is experiencing first hand, large institutional mandates being allocated to Separate Managed Accounts (SMAs). SMAs offer a number of key advantages to investors such as:

  1. Broad range of investment choices
  2. Customized asset allocation
  3. Competitive fees
  4. Investment restrictions
  5. Transparency

SMAs will be governed by clear and transparent rules called MiFID II which will harmonize the EU's regulatory approach to non-EU investment managers.

How can DMS help?

DMS is uniquely positioned in the market place to provide an effective solution that meets these new requirements. DMS has prepared to meet these regulatory challenges for its clients by acquiring a MiFID firm authorised and regulated by the Central Bank of Ireland with a pan European, cross border footprint across collective investment schemes and SMAs.

Under MIFID II, third country firms will be required to have substance and resources on the ground in Europe to enable them to market to accepted European investors through collective investment schemes and SMAs. Officially this does not come into force until January 3rd 2018 but firms will need to be able to demonstrate and give their investors comfort and certainty that they have a solution in place which will work for their clients from now and beyond January 2018.

In conjunction with DMS's market leading independent AIFMD and UCITS Management Company capabilities and offering, DMS has a key competitive market advantage in its ability to provide the regulatory solutions and substance that managers and advisers require in order to continue to access European capital.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.