North American broker-dealers and asset managers domiciled in the U.S. are watching their European counterparts gear up for compliance with MiFID II.
But will MiFID II affect U.S. broker-dealers and asset managers based in the U.S.?
Could the massive regulation that requires asset managers to unbundle research payments from executions, and quantify the value of research for its clients, find its way onto U.S. shores?
That question was the focus of an open call held by the Security Traders Association (STA) on March 2 examining the impact of MIFID II on North American broker dealers and asset managers.
Under the MiFID II delegated acts, which go into effect on Jan. 3, 2018, asset managers will need to pay for research from their own P&Ls, or set up so-called research payment arrangements (RPAs), which are to be funded by a commission sharing account (CSA) or a direct payment by the client.
Although the ruleset impacts firms based in Europe, U.S.-based asset managers competing for mandates against European investment firms could face competitive pressure to adhere to MiFID II rules.
Full Article here