Advice-giving firms are most likely to review and change their compliance functions to accommodate MiFID II, according to 52% of advisors, with 42% most likely to improve their fee structures to allow consumers to know more about their charges. Almost four in ten (38%) intermediaries believe that MiFID II will encourage IFAs to 'de-risk' by reviewing their professional indemnity cover and other things.

DFMs ascendant

According to nearly a third (31%) of advisers, a key result of this latest regulatory overhaul will be a drive among IFAs to outsource client portfolios to discretionary investment managers/discretionary fund managers or DFMs, with boutique adviser firms the most likely to follow this trend.

Brexit woes

The research shows how the introduction of MiFID II comes at a time when advisors are occupied with the consequences of Brexit. Almost one in four of them (24%) reported that Brexit had prompted clients to take a greater interest in their portfolios, while almost half (47%) said that clients were seeking more advice about how to protect their portfolios from post-referendum market volatility.