The UK’s Investment Management Association (IMA) has called for consistent regulation across the retail market in Europe, as well as improved data in the wholesale markets, in response to the European Commission’s review of the Markets in Financial Instruments Directive (MiFID).

The MiFID provides a comprehensive framework for investment firms offering services in relation to financial instruments, as well as rules to protect investors.

Commenting on sections of the review relating to distribution and sales, Guy Sears, director of wholesale, IMA said: “Alignment across European regulation (MiFID, UCITS, AIFMD and PRIPs) is needed to provide a level playing field for the operation of firms and for the sale of products across the European Union. Retail investors should be assured that all forms of retail investment products are subject to the same disclosure requirements.

“But making new rules alone will not be sufficient. Existing rules must be consistently enforced. A harmonised approach to the powers of supervisors and the sanctions imposed would benefit all market participants.”

The IMA also objects to the suggestion that UCITS funds should be split into complex and non-complex. The reason for this, Sear’s explained, was that this fails to recognise the existing and detailed regulation of UCITS and the required separation of roles, which are essential to investor protection.

Responding to the MiFID review for the regulation of capital markets, Sears said: “We understand why the Commission wishes to draw up a comprehensive framework within which trading in all financial markets may operate. However, detailed rules which fail to take account of the specificities of different instruments and trading conventions will not achieve this aim.”

According to Sears, transparency rules cannot be made for non-equity markets in general and each market must be considered separately. He has suggested that rules for non-equity markets should be specific to each instrument and should not necessarily be modelled on equity markets.

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