ISC: Implicit Costs: Are you ready?

Of all the changes introduced under MIFID II on 3rd January 2018, it is perhaps the topic of costs and charges that has generated the most debate amongst asset managers. Specifically, implicit costs and charges.

The objective of tighter asset management regulation is certainly laudable: to provide transparency into the trading costs of a fund, of which implicit costs are part, so that investors can make an informed choice. From an investor’s perspective, who would not want that?

Is your firm ready?

Regulators will for sure come calling in 2019, and if your firm is on their list, it needs to be able to demonstrate that it has a robust implicit costs solution in place or can demonstrate that it’s has firm plans in place and is proceeding to implement such a robust solution

If your firm has funds that fall into our Fund 3 scenario, the time to act is now to ensure your firm has a robust implicit costs process.

ISC can help you by examining how well they might be served by the different methodologies for calculating implicit costs.