Mifid II poses significant regulatory burdens on wealth managers and their business models, potentially resulting in significant consolidation of the sector, as has already been seen via RDR in the UK, according to the view of consultancy Stamford Associates.
A key change will be the spread of a ban on retrocessions on sales of investment products, it says.
In light of these expected changes, Stamford has partnered with consultancy accelerando associates to grow its customer base in German speaking Europe.
Guy Beech, head of Business Development at Stamford, said: “In order to grow in the new environment we believe wealth managers will need to focus more on creating and offering their own products in order to control the value chain and maximise profitability. We can help them build fund ranges which will stand out in an overcrowded market place and satisfy their clients, enabling them to grow their asset base, while reducing operational costs by outsourcing.”
“Given our experience in the UK market, particularly post RDR, we believe Stamford Associates is well placed to bring practical and well proven expertise to European wealth managers.”
Philip Kalus, founder and managing partner of accelerando associates added: “Our European fund distribution analysis provides sound evidence that there is major disruptive change ahead. Mifid II will foster more rigorous client and investment advice requirements. Many banks and independent wealth managers need to redesign their business models in order to adapt to a radically changing environment. We think that Stamford has a lot of valuable expertise that can be of real assistance.”