Is Anyone Ready for MiFID II?
A few months ago I published a blog on the cost of MiFID II and the complexity of complying with the regulation in the short time that is left between now and the 3rd of January, 2018. It is therefore not surprising to read that the latest survey on MiFID II suggests that just under two-thirds of professional services firms might not be in a position to comply on time. The poll taken by Duff and Phelps covered 183 professionals across the industry spectrum.
The rising cost of regulations and competing pressures are causing many firms to have a rethink of their MiFID II strategy. Many firms are looking to the FCA to give them guidance on how to prioritise their compliance strategy.
The survey further revealed that 89% of the respondents believe the costs of complying with regulation is no longer confined to implementation but goes well beyond. Potential regulatory fines, remediation, compliance resourcing and reputational risk are now budgeted for, increasing total spend on regulations from the current average of 4% of total revenue to 10% by 2020.
At its core, MiFID II is seeking greater transparency and control around data management. The key to reducing costs and likelihood of regulatory failure is without a doubt automation. Implementing an end-to-end operational control framework will significantly decrease risk and improve auditability. 61% of the Duff and Phelps survey respondents agreed that MiFID II will significantly improve control for their firms.
It is still not too late to put a strategy in place in time for January, 2018. Tackling MiFID II Transaction Reporting does not need to be an uphill struggle. Contact us at AutoRek to see how we can help you become MiFID II compliant and reduce the financial burden of implementing MiFID II.
Published On: 08 May 2017