FinoComp launches tool to tackle MiFID II '10% rule' dilemma

Targets DFMs and platform providers

Australian technology business FinoComp has launched a performance calculation tool that provides a solution to MiFID II's so-called '10% rule', which requires clients be notified within 24 hours if a portfolio falls 10% or more in a reporting period.

The rule, which comes into force alongside the rest of the regulation on 3 January 2018, has become a headache for DFMs operating on platforms as although the requirement to report portfolio depreciation lies with them, they often do not have access to information about their end clients. The looming challenges behind MiFID II's '10% rule' DFM's and platform providers told Investment Week in September that the rule is creating uncertainty about responsibilities across the distribution chain and said this could result in new contractual agreements between the two parties having to be w...