Wall Street Gets 3-Year Reprieve on MiFID Compliance From SEC

The video discusses the FCC's decision to delay the implementation of MiFID, a European regulation affecting Wall Street, by three years. MiFID requires brokerage firms to separate trading and research costs, conflicting with US SEC rules. The SEC's regulations classify firms selling research separately as investment advisors, which is undesirable for brokers. The video highlights the complexity of aligning US and European regulations and the challenges faced by the SEC in finding a solution.

What is the main reason for the FCC's decision to delay the MiFID rules?

• To reduce the cost of compliance

• To align with European regulations

• To give Wall Street more time to adapt

• To simplify the rules for brokers

What does MiFID require from brokerage firms?

• To register as investment advisors

• To merge trading and research services

• To separate trading and research services

• To increase the cost of services

What is the main conflict between US and European regulations regarding MiFID?

• US regulations require merging of services

• US regulations conflict with the separation of services

• European regulations are not applicable in the US

• European regulations are more lenient

Under SEC rules, what happens if a broker starts selling research separately?

• They receive a tax benefit

• They are exempt from MiFID rules

• They are deemed an investment advisor

• They must merge with a European firm

Why do brokers avoid being classified as investment advisors under SEC rules?

• It requires them to operate in Europe

• It limits their trading capabilities

• It subjects them to more stringent regulations

• It increases their tax liability