A PwC European wide survey has discovered that just over half of firms within all financial services industry sectors are considering MiFID II within the context of the wider regulatory change landscape.
The PwC survey entitled ‘Are you taking control of the MiFID II agenda?’ also reveals that over half of firms have allocated a budget to undertake some activity in MiFID II this year.
The survey found that many firms are planning to undertake strategic analysis of MiFID II impacts before the end of 2012. Asset managers appeared to have done less work on this compared to broker dealers, retail banks and private banks.
The report went on to show that broker dealers have a good understanding of the technical requirements within the MiFID II proposals and are including implementation plans for MiFID II in the context of the wider regulatory reform agenda.
Ullrich Hartmann, financial services partner at PwC said:
“Despite MiFID II deadlines being pushed back, it remains a key component of wider regulatory reform. Our survey findings show that a number of firms have already set up working groups and are raising internal awareness, conducting initial high level impact assessments and undertaking analysis of the potential scenarios of MiFID II outcomes. Financial services firms are right to act sooner in order to set their future strategy and develop related systems and processes to prepare their business for MiFID II. ”
“Recognising the importance of considering MiFID II within the broader landscape of regulatory reform should help firms manage their change programmes in a more effective manner, compared to those who intend to deal with MiFID II in isolation. MiFID II is not just a compliance exercise. Given the magnitude of commercial and operational impacts, successful implementation will require early involvement of relevant business lines and key functions such as IT and operations,”
“The deadline for MiFID II may have been pushed back, but acting now on MiFID II in the context of wider regulatory reform will help prevent firms from reacting too late to the market changes that will arise, losing profitability and surrendering market share to competitors. ”
