Another day, Another AIMA guide
July 14, 2017

Another day another guide from the Alternative Investment Management Association (AIMA). Hard on the heels of yesterday's news of its publication of a guide to choosing a fund administrator, AIMA has published a guide for alternative investment managers to help them understand and implement the enhanced ‘best execution' obligations under the European Union's updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018.

AIMA says its MiFID2 Best Execution Guide outlines the MiFID2 obligation to achieve the best possible results when executing transactions.

These rules were originally introduced under MiFID1 and have now been enhanced in a number of areas. In order to meet the new requirements, firms will likely need to review their execution policies and client disclosures (such as Investment Management Agreements) to ensure they meet the higher standards under MiFID2. Fund managers also will be required to publish annual reports about their choice of trading venues and brokers.

Best execution practices will vary between firms, depending on their investment strategy and the types of financial instruments they trade. AIMA's guide sets out the practical considerations that firms will need to take account of in order to ensure they are ready for the MiFID2 deadline and maintain ongoing compliance standards.

The guide was developed by AIMA in conjunction with a working group of members. The law firm Dechert LLP chaired the working group and is the sponsor of the guide.

AIMA's Chief Executive Officer Jack Inglis said: "The new best execution obligations under MiFID2 continue to be a key focus for our members as they work towards January 2018. We hope that our comprehensive guide will support them in their implementation programmes. Our recent MiFID2 survey indicated that some of our members with an international presence are setting the MiFID2 best execution requirements as their global standard. This makes it all the more important to get it right from the start."

Dick Frase, Partner at Dechert LLP, said: "New best execution obligations are a major part of the MiFID market reforms and will have a very significant impact on business practices. We were delighted to work with AIMA and its members on producing the MiFID2 Best Execution Guide, which takes a practical look at implementation of the requirements, and draws on good and poor practices identified by the FCA in their supervisory and thematic work in recent years."





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across assetman.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

Another day another guide from the Alternative Investment Management Association (AIMA). Hard on the heels of yesterday's news of its publication of a guide to choosing a fund administrator, AIMA has published a guide for alternative investment managers to help them understand and implement the enhanced ‘best execution' obligations under the European Union's updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018.

AIMA says its MiFID2 Best Execution Guide outlines the MiFID2 obligation to achieve the best possible results when executing transactions.

These rules were originally introduced under MiFID1 and have now been enhanced in a number of areas. In order to meet the new requirements, firms will likely need to review their execution policies and client disclosures (such as Investment Management Agreements) to ensure they meet the higher standards under MiFID2. Fund managers also will be required to publish annual reports about their choice of trading venues and brokers.

Best execution practices will vary between firms, depending on their investment strategy and the types of financial instruments they trade. AIMA's guide sets out the practical considerations that firms will need to take account of in order to ensure they are ready for the MiFID2 deadline and maintain ongoing compliance standards.

The guide was developed by AIMA in conjunction with a working group of members. The law firm Dechert LLP chaired the working group and is the sponsor of the guide.

AIMA's Chief Executive Officer Jack Inglis said: "The new best execution obligations under MiFID2 continue to be a key focus for our members as they work towards January 2018. We hope that our comprehensive guide will support them in their implementation programmes. Our recent MiFID2 survey indicated that some of our members with an international presence are setting the MiFID2 best execution requirements as their global standard. This makes it all the more important to get it right from the start."

Dick Frase, Partner at Dechert LLP, said: "New best execution obligations are a major part of the MiFID market reforms and will have a very significant impact on business practices. We were delighted to work with AIMA and its members on producing the MiFID2 Best Execution Guide, which takes a practical look at implementation of the requirements, and draws on good and poor practices identified by the FCA in their supervisory and thematic work in recent years."



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site