MiFID II Investment Management

The Markets in Financial Instruments Directive (MiFID) II was launched in the United Kingdom on the 3rd January 2018, as an extension from ‘MiFID’ which was launched just before the global financial crisis in 2007. 

The purpose of MiFID II is a European wide regulation that is designed to increase the transparency and operating standards (such as regulatory and compliance) across Europe for businesses involved in investment management or advisory with a view to increase investor protection and restoring investor confidence in the sector following the financial crisis. 

As a global consulting firm, XCAP Global work with a broad range of financial services firms based in ‘Third Countries’ (non-EEA) seeking compliance and consultancy support around MiFID II - ranging from advisory and execution of trades the European Union.   

Third Countries (non-EEA) established investment firms seeking to operate in the European Union, can do so through a MiFID II authorised entity.  This is particularly common for US based investment firms managing client money in a Segregated Account. The US based managed would set up an ‘Investment Management Agreement’ (IMA) with our FCA approved partner firm(s), allowing the US based manager to manage funds under MiFID II.    The FCA regulated entity would be the money manager, carrying out execution and the US based investment manager would be the Adviser for for the FCA regulated entity.  

This provides a cost-effective solution for US and non-EEA financial services firms to transact trades in Europe and grow their European footprint.  

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