Results from a study of IT managers and decision makers and Risk & Compliance managers within UK financial services businesses, reveals there is significant confusion about the impact Brexit will have on MiFID II compliance.
First introduced by the EU in response to the 2008 financial crisis, MiFID II is a set of reforms for the financial industry designed to prevent history from repeating itself in the same way again. The legislation is due to come into force in January 2018 and will place stringent requirements on call recording, transparency and disclosure in financial services.
With less than six months to go before the legislation comes into force, the study shows awareness about the impact of Brexit on MiFID II, one of the most significant updates to regulatory legislation in the European financial sector, is patchy, at best.
25% said that they believe that leaving the EU will mean that their organisation will be exempt from MiFID II compliance
70% of this group work in large enterprises with 100,000 plus employees
14% stated they have no idea how Brexit impacts their requirement for compliance
Almost a quarter of those surveyed (22%) say that, although they feel they understand MiFID II legislation, they are not sure how it applies to their organisation
Tom Harwood, CPO and Co-Founder at Aeriandi, says:
“Firms must realise MiFID II is no longer a distant dot on the horizon. Its 3 January 2018 deadline is now rapidly approaching and will have far-reaching implications for any firm dealing and processing financial instruments.”
“Compliance and IT teams will need to work together and determine whether they have adequate systems in place to implement the required processes and procedures for MiFID II compliance. Many organisations will need to procure and roll out a new set of tools or risk significant financial penalties.”
About the Study This study was carried out by research company Opinion Matters on behalf of Aeriandi. It was conducted amongst a sample of 250 professionals working in the UK’s Financial Sector in companies which process payment transactions over the phone and have 1,000+ employees. The sample was split equally between Managers with Risk/Compliance in their job titles and IT Decision Makers/IT Managers
About Aeriandi Aeriandi’s comprehensive voice security solutions deliver complete protection from the start to the end of every call. Whether PCI DSS, MiFID II, Dodd Frank, FCA or other, compliance can be complicated and expensive to attain and maintain. This is where Aeriandi can help.
Founded in 2002, its award-winning secure voice solutions are used by large corporates with highly complex infrastructures. Solutions include call recording, archiving, PCI phone payments, fraud detection and speech analytics.
Aeriandi is the only hosted provider to process more than £1 billion in payments per year. Delivered 100% via the cloud, means faster deployment at lower cost with less business disruption. Its cloud infrastructure means all of Aeriandi’s solutions are fully scalable and flexible, which means it is easily adapted to the changing needs of its customers’ business.