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Fund Managers at Risk of MiFID II Non-Compliance

With less than five months to go before the implementation of MiFID II, the financial services sector is rushing to ready itself for this transformational Regulation. As the clock ticks down, it now seems increasingly likely that many organizations are going to struggle to meet the implementation deadline, potentially having a significant impact on their businesses and the wider financial services sector.

The success with which organizations are preparing for the Regulation largely comes down to their function in the market. As reported in the FT, exchanges, banks and technology providers are well advanced in their preparations for the new regime. Last month, for example, Bloomberg rolled out its MiFID II credit trading system across Europe – well ahead of the January 2018 deadline. This level of readiness is not, however, reflected in the investment community.

Mirroring the results of earlier studies, new research from UK consultancy JWG has, for example, suggested that more than 30 percent of institutional investors are at high risk of non-compliance when the Regulation comes into force next January. The sheer complexity of MiFID II is acting as a barrier to compliance, with many fund managers struggling with where to start. This is a concern that was echoed by the UK’s FCA last month, when it urged UK firms to take action over MiFID II as soon as possible.

At RIMES, we understand the scale of the challenge facing buy-side firms, but we also believe a simple solution is at hand. By collaborating with businesses that have already addressed MiFID II, fund managers and other buy-side firms can tap into a pool of pre-existing knowledge and utilize existing processes and technologies. The solution to MiFID II is out there; firms simply need to know where to look.

In common with all firms in the financial services sector, RIMES had to go through its own preparations for MiFID II. We understood that the Regulation would require our customers to report on a far wider range of data sets than they have had to in the past, and as a data management and compliance expert we realized we needed to build tools that could help them do just that.

The result is our RegFocussm solution: a managed service specifically designed to help compliance officers at buy-side firms overcome the challenges of MiFID II, as well as MAR. Using RegFocus, buy-side firms can achieve compliance with MiFID II at a stroke, and at a much lower cost point than comparable in-house developments.

Our argument is simple: MiFID II need not be a compliance headache. The market has already responded to the legislation; all buy-side firms need do is evaluate the compliance service that best meets their needs.

The content provided in these articles is intended solely for general information purposes, and is provided with the understanding that the authors and publishers are not herein engaged in rendering regulatory or other professional advice or services.  Consequently, any use of this information should be done only in consultation with qualified legal counsel.  The information in these articles was posted with reasonable care and attention.  However, it is possible that some information in these articles is incomplete, incorrect, or inapplicable to particular circumstances or conditions. We do not accept liability for direct or indirect losses resulting from using, relying or acting upon information in these articles.

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