In her article 'Balancing act' (FW, April 2006), Deborah Hargreaves articulates well the state of the nation(s) in the face of the EU Markets in Financial Instruments Directive (MiFID).
As the mist clears and financial services firms gain sight of the details, exchanges, banks, brokers, investors and market participants will have their focus fixed firmly on the potential impact of MiFID on their businesses. Most are questioning whether the investment required will justify the benefits generated.
MiFID raises the game for the large pan-European banking community. Its members know well the challenges of implementing complex change programmes across multiple regions and asset classes.
MiFID will touch all aspects of their business, including internal functions and client-facing operations. Complex decisions need to be made regarding achieving compliance, seeking new strategic opportunities and the potential changes to firms’ underlying business models.
In the race to cross the finish line in good shape, there are obvious advantages to being first out of the blocks - firms cannot wait until the final detailed requirements are published before taking decisive action.
The winners will therefore be those firms who take the initiative, mobilise a MiFID response team early, and establish effective means of managing and absorbing change as the final detailed requirements emerge.
