(Non-)complexity through the eyes of MiFID(Non-)complexity through the eyes of MiFID
Faculty of Applied Economics
Faculteit Toegepaste Economische Wetenschappen
2014Boston, Mass., 2014
European journal of law and economics. - Boston, Mass., 1994, currens
37(2014):3, p. 477-488
University of Antwerp
The European Commission recently published legislative proposals to reform the Markets In Financial Instruments Directive (MiFID). This note elaborates on the proposed shift in classification of "structured Undertakings for Collective Investment in Transferable Securities (UCITS)". While MiFID I labeled all UCITS "non-complex", MiFID II deems all structured UCITS "complex". We propose a logical and consistent framework to refine this dichotomy and identify a limited number of product types amongst the various kinds of structured investments. The classification is traceable, comprehensible and is proposed as the basis of a "complexity indicator" that surpasses the current generalisation.