Editor’s View

A year has passed since Mifid 2 came into effect… more or less. The majority of key European fund markets have implemented the legislation (with Spain in the process of doing so) but its consequences are still becoming apparent and will reshape fund distribution for years to come.

The next big milestone in terms of impact takes the form of ex-post cost disclosures that will be sent to end-clients over the coming months. While additional cost transparency is a positive, the timing is unfortunate given what a rollercoaster ride 2018 turned out to be for financial markets. The same can be said for fund sales themselves, which remained bathed in red in November, albeit less so than during October’s carnage.

To mark the first anniversary of Mifid 2, this topical edition of Fund Radar dedicates around half of its coverage to reactions to the directive, ranging from evidence of improved investment advice from private banks in Austria to a decline in listings of North American equity ETFs in Sweden. The European Commission is now considering amendments to this expansive piece of legislation. Let’s see what 2019 brings…