The impact of delay
With the initial deadline for MiFID II being January 2017, it may be safe to assume most companies are well into their MiFID II projects and feeling confident. However the 12 month delay seems to have pushed many Financial Services organisations into a mode of ‘wait and see’ sentiment to compliance, and there is concern that the momentum will slow down and be detrimental to the project. Instead of incentivising companies to ramp up and take a ‘mobilise early’ approach to the regulation, data suggests that firms are relieved the rules aren’t here just yet and delaying their response.
In addition to this; in the wake of Brexit, some are wondering whether we could see another delay, which could buy more time to prepare for the introduction of the revised MiFID II. However, the FCA confirmed that European regulation is still a top priority and firms should press ahead with implementation plans.
Are you ready?
A survey of 25 major banks conducted by PA Consulting revealed that over 30% believe that MiFID II will impact their firm’s business strategy and are already taking action. However over 50% foresee an impact, but are still reviewing the impact on their business model.
Over 60% of FS organisations have put parts of their MiFID II programme on hold as they are still awaiting clarity from the regulators. This uncertainty and lack of clarity over the final requirements leaves a number of respondents feeling that they may not be ready by the implementation date.
Firms are advised to take urgent action, and move forward by using a set of working assumptions to allow for progression to be made. Over 80% of the survey respondents have forecast that their MiFID II programme teams are likely to increase by a minimum of 20% and a maximum of over 50%.
Now is the time for firms to avoid delaying or waiting for clarification and get it implemented.
How can we help?
Alexander Lloyd have a network of regulatory change specialists and consultants with MiFID II knowledge. If you would like to explore the expertise and availability of some interim support for your MiFID II project please contact one of our specialist recruitment consultants on 02030110057 or email FSInterimDivision@alexanderlloyd.co.uk