What is MiFID II?
The new Markets in Financial Instruments Directive (MiFID II) regulations come into effect on 3 January 2018. Many organisations are already working hard to adapt their systems, processes and reporting methods accordingly. However, many have yet to start making the changes needed to ensure they are compliant.
The challenge is huge as the regulation is so vast. Compliance is not an easy option – and the implications of non-compliance are severe and wide ranging.
A catalyst for banking reform
The new MiFID II and MAR (Market Abuse Regulation) legislation is designed to protect investors and to provide a coordinated, consistent, logical and open approach to regulation. Regulation is often seen as a ‘box ticking’ exercise but is, in fact designed to catalyse banking reform to ensure governance, compliance and risk mitigation. However, the risks of non-compliance are huge, not only in terms of potential fines from the FCA but also in damage to reputations and careers.
Recent fines on the FCA website show just how considerable non-compliance can be. These range from a few hundred pounds up to many millions!
Getting organised ahead of the MiFID II deadline is key
Many organisations believe that MiFID II compliance is just about changing the way they report to the FCA. But it’s a lot more than that. MiFID II also requires organisations to have strong internal systems and controls to capture all client information from a variety of sources. Data needs to be captured ‘real time’, stored and managed to ensure it is suitable and fit for purpose. What’s more, reports need to be designed to submit the right data in the right format at the right time.
All of this can take a great deal of time and effort. This is where the Sopra Steria end-to-end transactional lifecycle solution can help. Sopra Steria has a new ‘golden source’ solution based on the FCA’s own MiFID II system that can help organisations to:
- Be compliant with the very latest MiFID II regulations
- Ensure data is gathered, pre-validated, collated, validated and submitted in the right format on time, every time
- Be aware of any potential market abuse alerts to reduce the number of false positives