Thu, Dec 12, 2019

Nick Bayley Talks to the FT About Reporting Errors Made Under MiFID II

Nick Bayley, Managing Director in Duff & Phelps Compliance and Regulatory Consulting practice, spoke to Financial Times about the numerous errors made in transaction reporting under the Markets In Financial Instruments Directive (MiFID) II regulation.

According to the Freedom of Information (FOI) request made by Duff & Phelps, MiFID II faces a new challenge, as 20% of UK asset managers have admitted to making errors in their reporting to the Financial Conduct Authority (FCA) tracing back to over a year ago. 

“The sheer complexity of the MiFID reporting requirements means that virtually no one is getting it completely right. The honeymoon period of education and encouragement in relation to transaction reporting will not last forever. The FCA has told us that it will take a much stricter approach where firms have made no meaningful effort to comply with their obligations or failed to act on the regulators observations,” Nick commented.

Although, under previous regulations fines were introduced for fund companies who failed to generate accurate transaction data, he said “this suggests many firms do not fully understand the steps they should be taking to assure the quality of their reporting.” 

Subscribers of FT can read the article here.