Red Box Recorders’ research has found that 73% of ITDMs and senior compliance managers are not completely ready for MiFID II with 1 in 5 (21%) still not fully aware of the regulations coming into effect on 3rd January 2018. With just weeks to go, levels of education of the regulations’ implications and urgency to comply remain low.
Commissioned by voice recording specialists Red Box Recorders, the report takes a temperature check of attitudes, preparedness and concerns around the regulation and the results show as much confusion as ever:
- Over half (53%) admitted that they don’t know the exact date of the implementation
- Only 15% said they would describe their knowledge as complete
- A quarter (25%) admitted to not being fully aware of the increased financial penalties
- 43% were not fully aware of the requirements around recording client communications or how long they should be retained
When MiFID II becomes law in January 2018, financial service providers will be required to capture, retain and reconstruct all communications between buyers, sellers and investment intermediaries.
While 38% said that MiFID II will have a significant impact on the way they do business, one of the key issues possibly holding people back is the unknown effect that Brexit will have on the regulations. Nearly all (91%) of the respondents believed that the current negotiations have made MiFID II plans more ambiguous.
Over half of the ITDMs and senior compliance managers surveyed said they had extensive plans to invest in technology and infrastructure for compliance in 2018 and 95% are investing in compliance systems for inter-regional financial trading.
This research from Red Box Recorders shows that many organisations in the UK are still unsure what MiFID II means for them, and it is now crucial that everyone understands what solutions they need to ensure all communications are compliant.
