European fund body calls for removal of 10% depreciation rule

The European Fund and Asset Management Association (EFAMA) has called for the removal of the ‘10% depreciation alert' as it "encourages short-term behaviour, does not provide any added value…and increases operational costs," among other recommendations in its response to the European Commission's review of MiFID II/MiFIR. It has proposed revisions to Level 1 texts only and has indicated these can be achieved through a "more flexible interpretation" of the framework "via targeted amendments", while also suggesting annual thematic Q&A updates. Regarding investors protection, EFAMA recom...