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#1 13-12-2017 08:37:34

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 2437
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One third of brokers isn't prepared for new MiFID II EU legislation

One third of brokers isn't prepared for the new MiFID II European legislation


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The Markets in Financial Instruments Directive (MiFID II) is the new European legislation that regulates companies providing services related to financial instruments (equities, bonds, units of collective investment schemes and derivatives) and the places where these instruments are traded. The new laws have very broad requirements, ranging from the transparency of trading reports to the obligation to provide the best execution possible to clients and to archive communications. Brokers will therefore have to keep detailed records of all transactions, communications, services and activities for 10 years.

The first version of MiFID implemented in 2007 only affected equity markets. MiFID II also applies to derivatives, fixed income securities, currencies and commodities. The relevant forex financial instruments are: forward contracts, swaps, currency options and other currency derivatives that are deliverable and non-deliverable.

Less than 30 days from the date of effect of the new laws, 3 January 2018, the latest research found that 39% of British financial organisations do not know if their organisation is compliant or not. One quarter do not comply with the registration technology and 29% still follow the compliance process - despite the fact that companies can be fined 5 million euros or 10% of the figure of annual turnover for non-compliance.

8% of companies stated that employees are fully aware of the legal implications of MiFID II and that they have been trained on the processes required to comply. 14% did not know the processes required to be compliant, 37% are in the process of launching a training program and 41% do not know if staff are aware of the MiFID II legal requirements or if they have received training on legislation.

A little less than 2 weeks before the Christmas holidays, it is clear that many brokers are ill-prepared for MiFID II, although they have had the last 12 months to prepare.


"Anything worth having is worth going for - all the way." - J.R. Ewing

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