With only few months remaining till Markets in Financial Instruments Directive (MiFID II) is in put in place across Europe, firms will need to be prepared to implement this new legislation. European Firms will need to apply new measures to meet MiFID II requirements. Are you ahead of the game? Are you ready for MiFID II?
Countless firms will be affected by this legislation which broadens MiFID to capture firms that it previously didn’t. It focuses on number of deliverables which means it will include not only Compliance Staff, Legal Staff, Asset Managers and Investment Firms but also Commodity Firms, Human Resources and the IT Sector.
MiFID II will strengthen the role of management in order to ensure efficient guidance, market integrity and effective protection of the investors. MiFID II includes measures which require committed time, skillful knowledge and experience to understand the markets and firm’s activities, from risks to operation. Diversity will be necessary to avoid biases and to encourage critical thinking and various views, especially employee representation as they will be more familiar with the internal working on the firm.
Firms will need to increase staff responsibility and upgrade technology to ensure they meet MiFID II requirement.
The recent year delay to MiFID II emphasises the amount of work in IT systems that firms need to prepare for the new regulation. Businesses need to carefully consider MiFID II technology solutions. In a short period of time, firms will need to implement technology which can manage the complicated web of regulations that they are faced with. Some of the features that are needed include a transparent platform which trading activities will need to be migrated to, a new customer-facing portal to increase customer interaction and a robust client classification data system.
Upgrading platforms and migrating historical data whilst also ensuring accuracy is a time-consuming process and might lead to further HR demands as employees will need to be trained to use this technology.
The FCA is aware that the later they consult on and finally publish the final rules, the less time businesses have to prepare and implement MiFID II, thus they are facing immense pressure to complete these texts on time and go through European legislative. So far, the FCA is taking initiative and staying “ahead of the game” by publishing various consultation papers, a user guide and the application on their website as well as encouraging local relevant authorities to start taking action.
Our MiFID II workshops are run by delivery experts who can prepare you for MiFID II- click here to find out more.