R&C: How would you describe the impact that the Markets in Financial Instruments Directive II (MiFID II) is having on financial institutions (FIs)? In your view, where will the regulatory focus be in the future?

Taccogna: The Markets in Financial Instruments Directive II (MiFID II) has introduced a wide and diverse range of requirements, which have had, and will continue to have, a radical impact on FIs. To achieve compliance, firms have transformed their processes, documentation, governance and systems. The ‘real’ impact – the one on business models and profits – however, will only become fully apparent in the coming months. The industry’s attention is therefore likely to gradually switch from operational challenges to strategies, services, products and distribution channels. Furthermore, the industry expects UK and European regulators to engage with firms to assess impact, compliance and challenges. Clarification and even changes are not to be ruled out, especially with Brexit on the horizon, and FIs should continue to be alert to them.

Jul-Sep 2018 Issue

FTI Consulting