PA financial services expert, Andreas Rønnebro, discusses the new EU-directive MiFID II which comes into effect on 1 January 2018. In a survey carried out by PA, 40 percent of European financial service companies state that they are unsure whether they will be able to meet this deadline.
It’s perhaps not surprising that many industry players have taken a waiting position since it´s still uncertain in some areas what the exact regulatory demands are. Nevertheless, it’s problematic because if companies fail to meet this deadline, their existing business models run the risk of becoming obsolete “over night”, leaving them unable to trade their financial products and service with clients.
This hesitation is no longer an option companies can afford. They should look to secure early buy-in with their many organisational stakeholders, invest in sales channels and client meetings to strengthen dialogue with the consumers, and look to invest in a centralised customer management system to make their customer service more effective. And last but not least, they should proactively focus their business and simplify their portfolio of products and services.
“Industry players should view regulation as a competitive parameter and consider that a structured and timely implementation of coming legislation with a direct influence on business can be a decisive factor for operational success, or the opposite. A bank or an asset manager who implements for example MiFID II just 2-3 percent better than the competition, will gain a clear competitive edge in the market”, state Andreas.
Andreas Rønnebro is a financial services expert at PA Consulting Group.