Data optimisation is a top priority to help institutional investors benefit from regulatory change, according to a new white paper by Northern Trust.
The paper reviews regulations led by the implementation of the second Market in Financial Instruments Directive II (MiFID II) and General Data Protection Regulation (GDPR) for Q1 2018.
Both regulations impose record keeping, data management, privacy and transparency requirements on many participants in financial markets, the paper revealed.
It also found the opportunity to capitalise on regulatory change is truly global.
Additionally, while MiFID and GDPR were legislated in the EU they apply to organisations that conduct business in Europe from other jurisdictions.
Regulatory changes in other markets such as Australia, Canada, China, Singapore, South Korea, and the US will present additional challenges and opportunities, the paper stated.
Penelope Biggs, CSO for corporate and institutional services at Northern Trust, said: “Whilst compliance with legislation is paramount, the benefits of an effective data management strategy go well beyond regulatory compliance.”
“Both investors and financial services providers have the potential to reap significant rewards from a service, capability and reputational standpoint.”
Biggs continued: “It is this need for data-driven regulatory solutions across the globe that has inspired Northern Trust to dedicate significant resources toward building an extensive range of services to support clients in this area.”
“Our services range from transaction reporting (for European markets infrastructure regulation, MIFID II, and Australian securities and investments commission) and tax reporting (Foreign Account Tax Compliance Act, Common Reporting Standard), to regulatory reporting (Solvency II, FTK, RG 97, NPORT) and cost transparency reporting (transaction cost reporting for MIFID II and the packaged retail and insurance-based investment products).”
She added: “As this white paper shows, the need for data-driven regulatory solutions isn’t going away so we are working hard to help our clients achieve the best possible operational and commercial results from managing their data.”
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