More than 40% of financial services companies are concerned about the IT integration required to implement the EU’s Markets in Financial Instruments Directive (Mifid), according to a survey by compliance specialist Complinet.
The survey of 86 compliance, risk-management and legal professionals working in the financial services sector revealed that 32 were highly concerned about implementing the IT and systems integration required for Mifid compliance.
Mifid comes into force in November and requires financial companies that carry out transactions on behalf of customers to ensure they get the best deal. This means that they must be transparent, and to be so IT is critical in providing the necessary data.
James Burns, CTO financial services at Microsoft, agreed with the findings.
He said that if anything, the figure should be higher. “The problem with Mifid is the regulations are principle based and not in black and white. The compliance departments and the lawyers and not IT are deciding what you have to do,” he claimed.
He said that many of the firms that have the technology in place to be compliant are only covered for the short term. “I see the major expenditure on Mifid in technology terms in 12 months time,” he added. “A lot of people will do things to get compliant but it will not be a long-term solution.”
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