With the Design and Distribution Obligations (DDO) requirements due to come into effect in a little over 18 months, companies are increasingly turning their attention to the practical implications of the regime. In doing so, it is useful to consider some of the lessons learnt from the product governance aspects of the European Markets in Financial Instruments Directive (MiFID II).
A common issue arising from both MiFID II and DDO is that issuers and distributors are required to share information on a much more formal and detailed basis than ever before. There are several factors that to consider in order to make their data management as seamless and efficient as possible:
A recurring theme in regulatory change programs is that when companies fail to devote sufficient time and resources to solving data challenges, they are often forced to adopt manual workarounds and tactical solutions. A key factor in the successful implementation of DDO will be the extent to which companies are able to establish a sustainable and strategic solution to managing the data and reporting requirements.