UK hedge funds relieved to escape MiFID II best execution, especially venue disclosure – 10th July 2017

Alternative investment fund managers, including UK hedge funds, have expressed relief that they have escaped from the Markets in Financial Instruments Directive II (MiFID II) “best execution” requirements, as specified by the Financial Conduct Authority (FCA). The heaviest burden of the requirements specified in the regulator’s recent policy statement is the top-five execution venue disclosure, to be imposed on MiFID investment firms, they said. “The FCA had previously floated the possibility of extending MiFID II best execution provisions to AIFMs, a proposal that we disagreed with in our response to their proposals. The AIFMs are already subject to best execution requirements under the Alternative Investment Fund Managers Directive (AIFMD) framework, so we didn’t see a clear case for extending the MiFID II requirements,” said Alan Jacobs-Dean, head of markets regulation, the Alternative Investment Management Association (AIMA).

 

Alex Davidson, Regulatory Intelligence