EU's MiFID II Over-Regulation

MiFID II's over-regulation is the most destructive to competition among the top 10, with compliance costs driving smaller European brokerages out of business. The directive's research unbundling rules alone increased operational expenses by 15% for mid-sized firms, and total compliance spending has reached €2 billion annually across the EU—a burden that is 40% heavier than the average regulatory impact in developed markets. This has ultimately harmed retail investors by reducing choice and increasing transaction costs.