Survey reveals client reporting as greatest Mifid II implementation challenge

Feb 01, 2018
Transaction and transparency reporting, inducements and research also cited

Nearly 50 percent of investment managers and consultants surveyed at Northern Trust’s annual Regulatory and Depositary Conference cite client reporting as the greatest implementation challenge presented by Mifid II.

The survey of more than 100 attendees at the annual London event – held in November last year, but findings from which have just been revealed – focus on the regulatory demands faced by fund managers. It notes other Mifid II challenges, breaking the issues down as prioritized by survey respondents in the following ways: transaction and transparency reporting (approximately 20 percent), inducements and research (around 20 percent) and updating client documentation (about 15 percent).

‘The level of focus on client reporting is no surprise to us,’ comments Robert Angel, head of regulatory solutions at Northern Trust, in a statement.

‘The transaction-cost calculation disclosures contained within [Mifid] are complex and will require ongoing work even now, post-implementation, not only from institutional entities, but also from regulatory bodies as they look to further rationalize the relevant disclosures.’

In addition to concerns around Mifid II, the survey reveals that 65 percent of attendees expect the upcoming regulatory environment to demand an increasing amount of their time in 2018, compared with 2017. 

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