This is an update to our MiFID 10% Depreciation Rule post made on 29 September 2020
The FCA have issued a last-minute statement declaring a further six-month extension and subsequent amendments to the Covid-19 measure brought into effect in March 2020.
The regulator's amendments regarding the flexibility on reporting to professional investors now require firms to give professional investors the ability to opt-in to receiving notifications.
No action will be taken for non-reporting of 10% portfolio depreciation to retail investors provided:
- At least one notification in the reporting period has been made to retail investors indicating the value of the portfolio has depreciated by at least 10%
- Retail clients have been informed they may not receive similar notifications should values decrease by a further 10%
- Retail clients have been referred to “non-personalised communications” that general current market conditions (i.e. public channels)
- Retail clients have been reminded how to check the value of their portfolios and how to get in touch with the firm.
These amendments and extension will be in place until 30 March 2021.
* This is an update to our post made on 29 September 2020