Research from TeleWare, a communication technology business, has revealed that just 42% of senior decision makers are confident in their firm’s knowledge of MiFID II requirements. Although only 99 days away, worryingly more than half (54%) believe more education is needed on details of the European directive.
MiFID II is set to impact three times more financial firms than its predecessor. It aims to strengthen investor protection and inject greater transparency into markets. From asset managers to traders, brokers, banks and exchanges, everyone is having to prepare for the new regime that comes into effect on 3rd January 2018.
The survey of 100 senior decision makers in financial services reveals inconsistencies in knowledge ahead of the implementation of the directive. Reassuringly nine in ten (89%) respondents believe people in their firms are aware of the directive. Although nearly half of them (47%) admitted further education is needed on the details of what is expected from them.
Regulator warns ignorance won’t be tolerated
On Friday, the Financial Conduct Authority (FCA) warned in a conference speech in the City, that it is ready for the increased workload. The most significant trend for the regulator in the last year is the uptick in the number of investigations undertaken, an increase of 75%.
The FCA will be capturing ever more data with the introduction of MiFID II, moving from 20 million transaction reports per day, to an estimated 35 million following the introduction of the new directive. Enriching its view of the wider financial services market.
Small businesses better prepared
The research also revealed inconsistencies in the level of knowledge across organisations. Almost a fifth (19 per cent) of senior decision makers in large firms (with over 500 employees) admitted employees are not aware of MiFID II or its requirements.
Respondents in mid-sized companies (with 50 – 99 employees) were significantly more aware of the directive than their counterparts in larger companies, with 90% feeling confident that those within their firm are aware of MiFID II.
>See also: Brexit confusion over MiFID II compliance
Steve Haworth, CEO at TeleWare, comments “The financial services market is flooded with information about MiFID II. With less than 100 days to go, it is concerning that many senior decision makers within financial institutions are not confident that their staff know the ins and outs of MiFID II.”
“There still is time. Firms need to ensure regulatory training is a key priority over the next few months. And processes and systems are equally prepared by partnering with vendors who deliver robust, compliant solutions.”