In a nutshell, MiFID II (via COBS 16A) requires DFMs to report to a retail client where the value of their portfolio drops by 10%.  Under the Government's "Edinburgh Reforms" (and more particularly through the Markets in Financial Instruments (Investor Reporting) (Amendment) Regulations 2022) this requirement is to be removed from 18th January 2023. 

The Regulations also includes the following measures, which will take effect from 7 June 2023:

• An amendment to the rules on how investment firms should provide information, so that they apply in the same way to both retail and non-retail clients and potential clients.
• A requirement for information to be provided to all clients and potential clients in an electronic format rather than a "durable medium".
• A carve-out in practice for investment firms with retail clients or potential retail clients, where such clients have been informed of and have exercised their right to receive the information on paper.

For more on the Edinburgh Reforms, see our blog post here.