Mifid II will create “further requirements and additional costs” for Brooks Macdonald Group though preparations including an IT upgrade should mostly safeguard the firm from this, chief executive Chris Macdonald has said.
Mr Macdonald said that the rules, due in January 2017, would form part of ongoing industry change alongside continuing sector consolidation.
However he claimed his firm would largely be “sheltered” from the regulatory changes.
He said: “The amount of change in the sector and industry does not slow down.
“Regulatory costs have been high over the past two years with the required repapering of all clients, the Retail Distribution Review, FATCA and the like, but we believe these have now stabilised.
“However, MiFID II, which will impact in January 2017, will bring further business requirements and additional costs.
“We are sheltered to some degree as we are undertaking a full IT system upgrade, which is due to be completed in the final calendar quarter of 2016.”
He added: “We have built in as many of the known requirements of MiFID II as possible into the system specifications to enable us to comply with this new European legislation.”
His comments came as Brooks Macdonald posted an increase in total funds under management from £6.6bn to £7.4bn for the year ended June 30, as well as seeing underlying pre-tax profit rise from £13.3 million to £15.1m.
The company has proposed a final dividend of 20.5p per share payable on 28 October, up from 19p a year before.
Mr Macdonald added: “Over the coming year we will look to continue with the progress made and look to drive performance, service and new business.
“Investment markets remain volatile and this is clearly a headwind for the industry as a whole, but encouragingly our new business has been strong for the first quarter of the new financial year.”
