The importance of the regulation to all kinds of financial businesses is not in doubt, neither is the impact its implementation will have on the industry. The question comes when we look at how companies are making their compliance investment work. Looking at where they choose to prioritise capital and the types of systems they put in place will determine how they perform in the years to come.
MiFID II has a number of key objectives comprising:
- increased investor protection
- alignment of regulation across the EU in certain areas
- increased competition across the financial markets
- introduction of reinforced supervisory powers
To meet these aims, MiFID II contains a broad range of complex provisions. These include:
Protection for investors
Shockingly 1 in 6 (16%) of our survey sample of financial services professionals were unaware of the MiFID II compliance deadline with 1 in 3 (33%) admitting they didn’t feel personally prepared for the implementation of the directive.