Client reporting is greatest implementation challenge, says survey
29 January 2018 London
Image: Shutterstock
Close to 50 percent of investment managers and consultants reveal that client reporting is the greatest implementation challenge presented by the second Markets in Financial Instruments Directive (MiFID II), according to a Northern Trust survey.
The survey, taken at Northern Trust’s annual regulatory and depositary conference, asked around 100 attendees what they believed to be the biggest regulatory demands faced by fund managers, in relation to MiFID II.
Approximately 20 percent said transaction and transparency were the biggest challenge, while 20 percent said reporting inducements and research was of concern.
A further 15 percent cited updating client documentation as a high priority.
In addition to concerns around MiFID II, the survey revealed that 65 percent of attendees expect the upcoming regulatory environment will demand an increasing amount of their time in 2018, compared to 2017.
Robert Angel, head of regulatory solutions at Northern Trust, said: “The level of focus on client reporting was no surprise to us. The transaction cost calculation disclosures contained within the Markets in Financial Instruments Regulation are complex and will require ongoing work, even now post implementation, not only from institutional entities, but also from regulatory bodies as they look to further rationalise the relevant disclosures.”
He added: “Whilst it’s surprising the effort spent by the industry on regulatory compliance is expected to increase, MiFID II will require ongoing efforts for the duration of 2018.”
The survey, taken at Northern Trust’s annual regulatory and depositary conference, asked around 100 attendees what they believed to be the biggest regulatory demands faced by fund managers, in relation to MiFID II.
Approximately 20 percent said transaction and transparency were the biggest challenge, while 20 percent said reporting inducements and research was of concern.
A further 15 percent cited updating client documentation as a high priority.
In addition to concerns around MiFID II, the survey revealed that 65 percent of attendees expect the upcoming regulatory environment will demand an increasing amount of their time in 2018, compared to 2017.
Robert Angel, head of regulatory solutions at Northern Trust, said: “The level of focus on client reporting was no surprise to us. The transaction cost calculation disclosures contained within the Markets in Financial Instruments Regulation are complex and will require ongoing work, even now post implementation, not only from institutional entities, but also from regulatory bodies as they look to further rationalise the relevant disclosures.”
He added: “Whilst it’s surprising the effort spent by the industry on regulatory compliance is expected to increase, MiFID II will require ongoing efforts for the duration of 2018.”
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