“Investment and wealth management as well as wealth advisory firms are the most impacted segments,” says Abhijit Deb. “Especially those who will now have to spend more time familiarising themselves with the new regulation where they have not had to deal with similar requirements with much rigour, in the past.” Excerpts:
“Specifically, in the areas of data and reporting, Financial Institutions (FIs) will need to update their systems and/or processes that support compliance – not just around MiFID II but also allied standards.
As with most of the recent regulations in capital markets, the focus going forward will not just be on transparency but equally on traceability that is almost on-demand and near real-time, for clients and regulators alike.
FIs will have to take a closer look at both their legacy systems and their more recent investments in cutting-edge trading technology.
Integrating new regulatory requirements seamlessly to keep the wheels turning, whilst balancing day-to-day operations of the trading and banking books will also be a tall order.
So far, the focus has been on enhancing the systems and processes for reliability and transparency of transaction / electronic trade reporting across more asset classes as well as compliance and investor protection. However, this is only the beginning of the road to promote greater competition, transparency and financial stability.”
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