MiFID II: BMF shares the criticism voiced by the fund industry
Today's conference of the Federal Ministry of Finance (BMF) and Germany's Permanent Representation in Brussels on MiFID II shows that the German government shares the frequently voiced criticism about the Directive made by the fund industry and that it is committed to correcting its excesses. At the end of August, BMF contributed in the early stages of the discussion on revision of MiFID and approached the EU Commission with a position paper. MiFID II entered into force in 2018 with a review foreseen for spring 2020. Today, the BMF held a conference in Brussels with representatives of the European Parliament, supervisory authorities and consumers' rights organizations entitled 'Does MiFID II do the trick?'
'We are impressed by how strongly the Federal Ministry of Finance is committed, based on the protection of investors, to eliminating the deficiencies of MiFID. The directive was intended to protect consumers, but the result is that they receive excessive product information and less investment advice. MiFID II has clearly overshot its target,' says Thomas Richter, CEO of the German fund association BVI. 'The position paper of the Federal Government was the first step in the direction of making the necessary changes, now it is a matter of finding allies in the EU Commission and the Parliament for them. We therefore expressly welcome the BMF's initiative.'
BVI pointed out the deficiencies of MiFID II early and unmistakably. The main points of criticism remain the obligation to record telephone calls, the information obligations towards professional customers and the different information requirements about costs under MIFID II and PRIIPs.