Some member states (e.g. UK, NL) are spearheading the change in product placement rules by imposing very strict national laws banning 'inducements' (i.e. indirect revenues of the distributor stemming from the product manufacturers). The MiFID II rules are not going as far as the national regimes already in existence, yet they are providing for a 'game changing' impact, which will impact the distribution and business models within the EU.
The most bespoken impact of MiFID II on the product placement in the EU is certainly the ban or repayment duty on inducements in case of 'independent advice' or discretionary portfolio management. Such ban does trigger a re-assessment of the post-MiFID II distribution models (i.e. fees, profitability and client segmentation), the product shelf (i.e. which products for which investor at which price) as well as the service level per client segment (i.e. independent advice or non-independent advice).
Partner Regulatory Advisory - MiFID II Leader
Tel: +352 49 48 48 4174
Regulatory & Compliance Advisory Services Partner, PwC Luxembourg
Tel: +352 49 48 48 2245
Partner Audit - Financial Services Leader
Tel: +352 49 48 48 2101