Mixed blessings from MiFID?
As the much-misunderstood MiFID finally looks set to darken our doors, who will benefit from the new regulation?
The Markets in Financial Instruments Directive (MiFID) is tipped to break down investment barriers and create a common market for financial services.
Not so long ago it seemed that we were awash with surveys on MiFID saying how financial services firms were confused about their new responsibilities and were looking to regulators for guidance.
Now that D-day's here, law firm Clifford Chance, which advised the FSA on the changes, says only four countries are ready for the rules - the UK being one of them.
The winners so far have been the IT consultancies providing the necessary software, and financial IT professionals have been flush with work.
However, as the borders to investment come crashing down, many predict an influx of business to the Square Mile. Especially, say MiFID's champions, as New York still reels from the increased cost and complexity imposed by Sarbanes Oxley.
In the other camp are those claiming MiFID is something of a quiet revolution and that the cost of its implementation - currently estimated at somewhere approaching 1.2bn in the UK - does not justify the short-term benefits. Some experts say bigger banks have paid 30m apiece to upgrade software systems, a price that could prove prohibitive to smaller players, who may eventually fall by the wayside.
Should London be bracing itself for a flurry of activity? Will the influx of business see a surge in the number of jobs? Or is it more of a balloon popping than a big bang? Your thoughts please...
