MiFID II in APAC – the impact of regulation
Last month we were invited to attend the Bloomberg Asia: Bracing Change event in Hong Kong. The seminar explored the challenges of MiFID II compliance in APAC with a host of FS risk and compliance managers from around the globe.
Bloomberg product specialists and Red Box Recorders shared their thoughts and direction on how the financial services industry can best prepare and ready itself in Asia in order to comply to this regulation. The introduction of MiFID II to the European financial markets will significantly impact the entire global trading environment and businesses need to make sure they are not only ready but also making the most of their compliance data.
When MiFID II becomes law in January 2018, financial service providers will be required to capture, retain and reconstruct all communications between buyers, sellers and investment intermediaries. Records of communications that lead to trade, as well as those that were intended to lead to a trade (even if the eventual trade doesn’t take place) must be kept on record with an increase in penalties for those failing in these obligations.
The main challenges that companies face are:
- To capture and store all communications in high quality
- Retain recordings for at least five years
- Accurately reconstruct conversations quickly
- Provide accurate information to regulators
- Evaluate recording process effectiveness
We shared the stage with Tom Jenkins from KPMG China who looked at the impact of the regulations, and Kelvin Ng from Bloomberg talking around Trade and E Communication Surveillance.
The forum was a great chance to meet with financial service professionals on the ground and talk about how we can meet their needs through our communications and recording solutions. It also serves as a timely reminder that the clock is ticking on compliance. Thanks again to Bloomberg for having us along and we’ll keep you updated on more events over the next few months.
Author: Andrew Ford, CMO, Red Box Recorders