Mifid II is driving smaller firms to the wall

Daniel Schlaepfer

Daniel Schlaepfer

The burdensome rules are forcing smaller independent financial advisers to take a closer look at their businesses and revise their charging models.

The victims are lower value investors who are now lossmakers for these firms, and the result is higher charges for them - this was one of the conclusions of the Platforum report, Adviser Market: Charging Models, published in August.

It is apparent in the trading, advisory and research sectors that Mifid II regulations threaten small and medium-sized firms, driving unnecessary consolidation.

A decade ago, we learned the hard way that a financial sector dominated by a few firms ‘too big to fail’ is no good for anyone. 

Daniel Schlaepfer is president of Select Vantage