The Financial Conduct Authority (FCA) has extended the 10% drop rule suspension for a further six months to March 2021 as it warned of market volatility linked to the continued spread of Covid-19 and Brexit developments.
The temporary coronavirus pandemic-related measure was first introduced in March this year as market volatility spiked. Firms providing portfolio management services or holding client accounts have had to notify clients of 10% market drops since the Markets in Financial Instruments Directive II (MiFID II) came into effect a little over two years ago. Regulation Blog: 65% of firms 'unprepared' for LIBOR transition However, during the early stages of the pandemic and subsequent market turbulence, the rule became burdensome on financial advisers and others as they had to report on mul...
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