Focus on MiFID II and fund managers

The EU’s Markets in Financial Instruments Directive (MiFID II) will radically change the way that its securities and derivatives markets are regulated. While the impact of the 148-page document will affect every nook and cranny of financial markets, one of the most significant impacts will be on investment managers.

Phil Thornton looked at the challenges that fund managers and their advisers faced in two article for the magazine and website of the Chartered Institute of Securities and Investment.

The first looked at one of the most important issues – the need for sell-side companies to separate charges for execution from charges for access to research. Phil spoke with a number of fund managers and advisers to get an idea of how prepared they would be for MiFID II. The good news was that it showed that more than 60% have already set, or begun to set, their research budgets, and are making decisions on which payment methods to use. The article is here.

The second identified the sizkey themes that financial participants need to bear in mind: governance; advice; trading and execution; fees and inducements; corporate governance; and trsnaparency. The article is here.

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Focus on the IFC and the EBRD’s equity stakes for EMEAfinance

We wrote and researched two articles for the latest edition of EMEAfinance magazine and website. The first was based on an interview with Tomasz Telma, regional director for Eastern Europe and Central Asia at the International Finance Corporation, the private sector-focused arm of the World Bank Group. With the prices of oil and other commodities hitting new low levels he set out his vision for building a model of long-term sustainable growth for a region that is still seen as an unexploited emerging market. The article can be found here.

In the run-up to the annual meetings of the European Bank of Reconstruction and Development, we looked at the bank’s investment in financial institutions (FI). We spoke with Nick Tesseyman, its managing director for financial institutions, Alexander Saveliev, head of operations and portfolio for FIs as well as with Erik Berglof, who was until recently its chief economist. The article looks at the role that investment in FIs has played over the 25 years from 1991 to 2016 from the initial investments as the countries opened up after the collapse of the Soviet Union, through to the steps taken in the midst of the global financial crisis, to more recent investments in the current tricvy volatile and low-interest rates environment. The article can be found here.