Examining Europe's New MiFID Rules

The video discusses the implications of MiFID rules and the SEC's new action letter, focusing on the challenges faced by banks regarding registration as investment advisers to receive research payments. It highlights the debate over who should bear the cost of research—fund managers or end investors—and the potential impact of MiFID II. Wealth managers prefer not to pass research costs to clients, leading asset managers to absorb these costs. The video also covers lobbying efforts in Washington, with the SEC showing willingness to address industry concerns. The European Commission is aware of the issues, and exemptions for U.S. banks are being considered.

What is the main concern for U.S. banks regarding the new SEC action letter?

• The rise in inflation rates

• The need to register as investment advisers

• The increase in interest rates

• The decline in stock market values

Who is likely to absorb the cost of research according to the discussion?

• Asset managers

• Wealth managers

• Private banks

• End investors

What is the stance of wealth managers and private banks on research costs?

• They want asset managers to pay for research

• They prefer to absorb the costs themselves

• They are indifferent to who pays

• They want clients to pay for research

What are investment advisers and brokers doing in Washington?

• Celebrating a new policy

• Attending a conference

• Protesting against regulations

• Lobbying for changes

What is the European Commission's role in the conflict discussed?

• They are unaware of the conflict

• They are ignoring the issue

• They are actively resolving the conflict

• They are aware and considering solutions