Sunday, October 1st 2023

Explosive Changes Ahead

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In January 2018 we witnessed the introduction of MiFID II, whilst many had anticipated serious reform on the introduction of MAR 7 in 2016 it was only this year that we’ve seen the two working hand in hand helping to improve the landscape of the junior markets. In short the regulators and the FCA have been made to look complicit in housing bogus businesses on it’s exchange in the wake of numerous proven frauds and high profile scandals leading to market commentators now lableing the London enforcers “chocolate teapots”.

One of the main focal points has been the reporting of it’s business by brokers who have now been instructed to gather more than twice the number of data points on clients as previously required  this makes completing transactions a more arduous job as the amount of paperwork on seeking legitimate suitability of clients looking to make an investment has increased and must be defined correct. The primary objective is to validate participant eligibility and suitability preventing future complaints of shoddy governance or compliance failures.

Additionally the regulators have insisted corporate entities must also report on a number of historical (outstanding) notifications leading to umpteen RNS’s showing legacy holding disclosures that, for whatever reason were not made at the appropriate time, this again acts as further validation of the market changes. In light of the SEC investigation (FBI sting) in conjunction with major market address, one has to assume that the same will not happen again, although this is the junior markets and history tells us that it will.


We see the above leading to an explosion of subscriber based participation’s through online apps such as Teathers financial or Primary bid, as the relationship between deal and participant size is conducive with a more successful outcome, whilst we at TMS are not suggesting that junior broking is completely flawed we are highlinghting the changes that are being made and It’s  effect moving forward. Our outlook is one of an open mindfulness.