One of the most disliked regulations introduced as part of MiFID II is the requirement for 10% depreciation reporting for discretionary managed accounts.
FinoComp's FinCAT team, which specialises in data analytics, has run the numbers on the impact on performance calculation algorithms and reporting, which was carried out in Q4 2018 across a cohort of over 24,000 discretionary managed accounts. This analysis has produced an interesting set of numbers and we have correlated the results to some of the popular beliefs around this regulation. Myth one: 10% drop rarely occurs It has been touted many times that such a drop in value rarely occurs, and that it has only happened "four times since the war". Of course, it did happen in the ...
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