Comment faire émerger le vrai coût du risque financier en gestion de fortune ? Une critique de MIFID-II

Bertrand Munier and Ève Menk-Bertrand

Revue d'économie financière, 2019, vol. N° 133, issue 1, 61-93

Abstract: The outflows of funds under management in private banks as well as in other wealth management institutions in the recent period have reached surprising amounts, sometimes imperiling the temporary profitability of the institutions they flow out from. The present article therefore suggests designing a proactive client-risk management grounded on a convincing explanation of such outflows. An innovative implementation of article 25 of the MIFID-II regulation could have provided an appropriate basis to this end. The present article shows that such is not the case, given the tools of implementation essentially selected, based on fixed questioning and qualitative scoring, leading to results opposed to the ones the notion of client suitability intended to reach. Beyond this assessment, the paper dwells on a synthetic view of the evolution of risk analysis and shows that only today?s generalized appraisal of risk tolerance, beyond Von Neumann Morgenstern?s vision, can provide the explanation searched for. The authors recommend using digital interactive tools, based on this model and quickly ?learning? the investor?s risk-profile, to implement a proactive client-risk management. This solution at the same time restores a true compliance to MIFID-II regulation. Classification JEL : G21, G28.

JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2019
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