Systems and Controls
Client Management
Reporting
Best Execution
MIFID is the most far-reaching change in financial regulation since the 1992 Investment Services Directive. It has the potential to affect every area of a financial institution, including those that were previously untouched.
Four requirements are fundamental to MIFID compliance:
Systems and Controls
MiFID’s principles based regulation further transfers the responsibilities for managing regulatory risk to senior management. By aligning the requirements of MiFID and Capital Requirements Directive (CRD), regulators have offered an opportunity to reduce the direct and indirect regulatory costs. To do this depends on effective systems and controls.
Operationalising principles based regulation and exploiting the risk based benefits will be better achieved through up to date, well managed policies. We deliver technology enabled next generation policy management solutions within an overall policy framework. This helps you to ensure that your MiFID regulatory response is consistent and effective not only in the principal areas of Conflict of Interest and Best Execution but also more widely in support of Governance, Risk and Compliance under CRD.
Using our next generation policy management approach will provide you with:
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rationalised and robust policies from a regulatory, business and operational perspective within a consistent framework
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streamlined policy deployment
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consistent, cost efficient policy management and tools
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demonstrable regulatory risk management across all potential regulatory areas including MiFID
To understand more about our Next Generation Policy Management please contact Chris Collins or Nikki Lovejoy
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Client Management
The client centric nature of MiFID means that Client Reclassification is the one-off exercise that must be completed by 1 November 2007. We can help you address this challenge both from a tactical perspective, in terms of immediate data quality review and remediation, through to embedding changes in your strategic client acceptance/ client Onboarding operating model. The benefits of expediting new client account handling are:
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reducing time to trade
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reducing cost
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exploiting anti money-laundering and know your customer initiatives
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improving data quality
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improving the customer experience and facilitating cross-selling
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improved customer relationship management and client retention
For more information on Client Reclassification and Client Management under MiFID please contact Symon Dawson or Chris Collins
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Reporting
MIFID brings with it a reporting burden that is not only supplemental to existing FSA Transaction Reporting regulations but spreads the burden more widely affecting geographies and transactions hitherto not covered.
Using our unique Targeting Operating Model (TOM), we can streamline and reduce the cost of your reporting processes, identify and resolve errors and reduce the regulatory burden by helping you to introduce and implement integrated regulatory reporting standards and processes.
Using the Deloitte Reporting approach will help to:
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provide a single source of data for all MiFID and other
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drive out the optimal value in, and reuse of your data
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reduce the cost and conflicts in your reporting systems
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avoid future regulatory and reputational risk
For more information on MiFID compliant transaction reporting and how to use Deloitte’s Target Operating Model to streamline your reporting processes, please contact Hugh Macquarrie or Chris Collins
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Best Execution
MiFID requires firms to produce a policy document that describes their approach to trade executions and to monitor them on an ongoing basis. Over time there will be a greater push from the regulator to ensure there is a real time element to prove out the best execution of the trade.
To deliver the commercial benefits of an innovative best execution policy, organisations will be required to initiate a comprehensive review of their current functional application landscape that support best execution across asset classes from front to back. To deliver Best Execution organisations will have to:
Deloitte is a market leader in offering Trading Transformation programmes which provide client benefits in business trading strategy, target operating models, trade life cycle processes, business IT strategy and system integration.
To find out more about our Best Execution Services, please contact John Da Gama-Rose or Chris Collins
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