Winterflood study: Trust investors concerned about negative impact of MiFID II and PRIIPs

Annual survey from Winterflood

More than half of investment company buyers believe MiFID II and disclosing costs on key information documents (KIDs) under PRIIPs rules will have a negative impact on the trust sector, putting them at a disadvantage compared to open-ended products, according to Winterflood's 2018 Annual Investment Companies Survey.

Of the 158 respondents, who mostly included wealth managers, investment trust directors, institutional investors and IFAs, 58% said the regulation which came into force in early January was "complex", "impractical" and "unnecessary", adding it would lead to "less people buying research". One respondent was particularly unimpressed, stating that the regulation "disadvantages investment trusts against open-ended funds and makes it difficult to invest in the sector for advisory clients due to the extra complexity". However, of the 14% who remained optimistic and believed MiFID II would p...