Investments  

Christmas market movement reveals danger of Mifid II rule

Fundsnetwork provides daily updates to advisers and discretionary fund managers, to enable advisers to notify the clients.

This service is not available on pension portfolios as the company's view is these fall outside the Mifid rule requirements.

A spokesman of Zurich said the total proportion of platform clients it has so far had to contact because they have seen a 10 per cent reduction in their portfolio is less than 1 per cent.

Interactive Investor reported that it was notifying 22 clients a day of a 10 per cent drop in November and December, but, as market conditions have improved this has dropped to 6 per day in January.  

A representative of the Quilter platform: "Although we monitor on a daily basis we have been relatively unaffected.

"We are required to inform advisers when the value of a client’s WealthSelect Managed Portfolio has depreciated by 10 per cent or more since the production of the last quarterly statement and thereafter at multiples of 10 per cent.

"In 2018 this occurred only once. After staggering around unpredictably during the whole of December the eventual market fall finally happened on 27 December.

"The timing was a bit of a turkey to put it mildly. However this only impacted our highest risk ‘WealthSelect Passive 10’ portfolios and therefore only affected a negligible percentage of clients/advisers over all our MPS risk ratings and active portfolios as well."

david.thorpe@ft.com