The deregulation of the selling of financial products across Europe with the introduction of the Markets in Financial Instruments Directive...

The deregulation of the selling of financial products across Europe with the introduction of the Markets in Financial Instruments Directive should benefit UK private client stockbrokers and investment managers in selling their services to British expatriates throughout Europe, says a leading expert.

Angela Knight, the chief executive of the Association of Private Client Investment Managers and Stockbrokers, says UK-based private client financial firms will be able to sell their services to UK expatriates throughout Europe after the introduction of MiFID in November 2007.

“There are an ever-increasing number of wealthy Brits, particularly around the Mediterranean, which private client stockbrokers and investment managers will be able to grow their business from,” Ms Knight told WealthBriefing.

Already some UK-based smaller private client groups such as JM Finn are targeting the UK expatriate market in Spain. “This will not just be a boom for the big investment houses – smaller private client firms should exploit their good personal relationship skills with clients and seek to grow their business among the British expatriate market,” said Ms Knight.

Ms Knight said, despite the regulatory and bureaucratic concerns that many private client groups feel with the introduction of MiFID, the directive could be beneficial to UK financial firms.

“Financial firms on the continent are likely to feel the regulatory pressures much more than in their counterparts in the UK,” said Ms Knight. “UK firms match many of the regulatory framework required by MiFID already.”

As an example, many investment advisors on the continent do not hold any professional qualifications. But under MiFID, they will be required to gain advice-centred professional qualifications.

APCIMS is currently holding a series of seminars for its members on the implications of MiFID.