Register for The Paypers news Follow The Paypers on LinkedIn! Follow The Paypers on Twitter! Follow The Paypers on Facebook! Follow The Paypers on Google+!
The Paypers, paypers, Insight in payments, News, Reports, Events
 advertisement
Digital Identity, Security & Online Fraud

UK financial institutions unprepared for MiFID II legislation

Tuesday 14 March 2017 | 11:40 AM CET

A study of IT managers within UK financial services businesses reveals a lack of preparation and understanding of the requirements of MiFID II legislation.

The legislation is due to come into force in January 2018, and the study, carried out in January 2017 for Aeriandi, shows managers and decision makers within these institutions have little understanding of the severity of potential penalties and are struggling to apply the legislation to their businesses.

Key findings reveal that almost three quarters (73%) of Risk & Compliance managers in Financial Sector admit they are not aware of penalties of up to 5 million euros or 10% of annual turnover. Also, 17% of Risk & Compliance managers are unaware a company could receive a cease and desist order for non-compliance and almost a quarter of those surveyed (22%) say that, although they feel they understand the MiFID II legislation, they are not sure how it applies to their organisation.

Over a quarter (29%) do not yet have the technology or the infrastructure needed in place for compliance and only 10% are currently communicating with partners and suppliers about their preparations for compliance with MiFID II.

The study highlights a concerning gap between general awareness and understanding of the legislation and an understanding of the practical detail, knowledge and planning that is needed to prepare for compliance.

 advertisement
 advertisement
 advertisement
 advertisement