FCA 'flexibility': Regulator temporarily softens rules on 10% drop notification requirement for coronavirus crisis

Firms complain about 'operational burden'

The Financial Conduct Authority (FCA) has attempted to provide some clarity to financial advisers and others in the retail investment value chain over the 10% notification drop rule.

Firms providing portfolio management services or holding client accounts have had to notify clients of 10% market drops since the Markets in Financial Instruments Directive II (MiFID II) came into effect a little over two years ago. However, in the recent market turbulence, the rule has become burdensome on financial advisers and others as they have had to report on multiple drops. The watchdog said firms had complained this regulation had created an "operational burden". The lang cat offers free access to hub of platforms' 10% MiFID rule strategies In order to help firms during...