A straw poll of asset managers by data management provider Accudelta found that over half (52%) said that Mifid II was the most important regulation for their firm this year, with Solvency II coming in second with 26%.
With a raft of existing and upcoming regulation to address, many asset managers said that they are looking for ways to minimise the reporting burden associated with both pieces of regulation, with some looking to reuse reporting and regulatory data.
Adopted in 2007, the existing Markets in Financial Instruments Directive (Mifid) aims to improve the competitiveness of EU financial markets by creating a single market for investment services and activities, and ensuring a high degree of harmonised protection for investors in financial instruments, such as shares, bonds, derivatives and various structured products.
Mifid II, which was pushed back by one year, is expected to come into force in 2018.
The updated regulation is intended to strengthen the protection of investors by introducing robust organisational and conduct requirements.
“Although fund managers have been given a slight reprieve from Mifid II, it seems that this regulation is still the main area of concern for asset managers across Europe."
It also aims to ensure that trading takes place on regulated platforms; introduces new rules on high frequency trading; improves the transparency and oversight of financial markets and will strengthen competition in the trading and clearing of financial instruments.
Oonagh O’Mahoney, senior vice president at Accudelta, said: “It has become clear that a common regulatory language is beginning to emerge allowing asset managers to identify overlaps between a number of regulatory reporting regimes.
“There has been considerable discussion about the potential overlaps between areas of the Priips (packaged retail and insurance-based investment products) regulation and aspects of Mifid II. It’s logical therefore for asset managers to leverage their efforts and look for overlap and reusable reporting data.”
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