Alternatives money managers needing help with new best-execution obligations under incoming European rules can now look to their representative association for guidance.
The Markets in Financial Instruments Directive, known as MiFID II, which goes live in January, will likely require alternatives firms to review their execution policies and client disclosures.
Best-execution practices will vary among managers, depending on investment strategy and the types of financial instruments they trade, so the Alternative Investment Management Association has published a set of practical considerations to help firms ensure they are ready by the deadline.
The association developed the guide with a group of its members, while law firm Dechert LLP chaired the group and sponsors the guide.
"The new best execution obligations under MiFID II continue to be a key focus for our members as they work toward January 2018," said Jack Inglis, CEO at AIMA, in a statement accompanying the new guide. "We hope that our comprehensive guide will support them in their implementation programs."
A recent MiFID II survey by AIMA showed that some of the association's members with an international presence are setting the best-execution requirements under the rules as their global standard. "This makes it all the more important to get it right from the start," Mr. Inglis added.
AIMA has already published a MiFID II Guide for Investment Managers and a MiFID II Vendor List. The MiFID II Best Execution Guide is only for AIMA members, but an executive summary is available on the AIMA website.