EUROPE - The majority of European institutional investors believed new regulations, due next month would increase transparency and integrating capital markets, according to research from Greenwich Associates.
The research revealed investors said the Markets in Financial Instruments Directive (MiFID), scheduled to take effect on 1 November 2007, had a good chance of achieving the regulators’ stated goals of increasing market transparency and further integrating Europe’s capital markets.
John Colon, consultant at Greenwich Associates said: “Half the institutions we interviewed say MiFID will increase clients’ ability to measure and achieve best execution, while only 17% think the rules will make it harder for clients to assess best execution.”
However, more than three-quarters of the institutions said that MiFID would place mid-sized and regional brokers at a disadvantage, and 55% think the new rules favor major broker-dealers.
Jay Bennett, consultant at Greenwich Associates added: “Europe’s institutions expect that there will be winners, including the institutions themselves, large broker-dealers and electronic trading venues — which will benefit from the integration of markets and new requirements governing best execution and transparency. They also believe there will be losers, including smaller broker-dealers and exchanges.”
The directive is set to introduce significant changes to Europe’s regulatory framework with the goal of integrating Europe’s national markets, including new pre and post-trade transparency requirements and reporting requirements for equity markets, new capital requirements and other provisions intended to facilitate cross-border business.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.