UBS' Orcel Says MiFID Rules to Challenge Profitability

The video discusses the contrasting forces in unbundling services, where clients may want to pay less for individual services, and the impact of strong relationships on service choices. It highlights how competitors with better offerings can gain market share. The video also covers the uncertainty in planning for future adjustments, emphasizing that no one has a complete strategy figured out yet.

What is a likely client reaction when services are unbundled?

• Clients will ignore the unbundling and continue as usual.

• Clients will seek to pay less or avoid paying for certain services.

• Clients will demand more bundled services.

• Clients will want to pay more for each service.

How can competitors B and C gain market share?

• By increasing their prices significantly.

• By providing better quality services than competitor A.

• By maintaining the same level of service as competitor A.

• By offering lower quality services than competitor A.

What is the expected market condition at the beginning of next year?

• Complete stability with no changes.

• A decrease in market competition.

• A clear and defined strategy for all companies.

• Some adjustments as companies align their strategies.

What is the main challenge for investment banks and clients as of September?

• Avoiding any market adjustments.

• Aligning with all providers and having a clear approach.

• Understanding the current market trends.

• Having a fully figured out strategy for January 1st.

What is the potential outcome of the market scenario discussed?

• A decrease in service quality across the board.

• Multiple scenarios with potential adjustments.

• A single, predictable outcome for all companies.

• No changes in market dynamics.