Big businesses struggle to meet MiFID II deadline

Small firms claim they are ready for MiFID II as larger firms continue their struggle to meet the January deadline.

With less than four months until MiFID II is implemented in Europe, more than a third of large businesses remain unsure if they will meet the deadline.

A survey carried out by communications technology firm TeleWare suggests smaller firms are more likely to be fully compliant with MiFID II come January 2018 than larger firms.

The poll of 100 senior decision makers across financial services found 28% of firms overall are unsure if they’ll be ready in time, but 38% of firms considered large stated they may not meet the deadline.

On the other hand, all firms considered small - with less than 10 employees overall - said they are fully confident about being MiFID II compliant by January next year.

Steve Haworth, CEO of TeleWare, explained MiFID II is a complex directive which affects a variety of functions within each business.

“Firms need to look outside of their immediate business to find the compliance answer… With technology underpinning operations, it’s highly encouraging that firms are investing in this area ahead of January 2018,” he added.

The research also found 71% of firms questioned investment in IT systems ahead of January 2018, following the European Commission’s decision to delay the regulation.

A separate survey of asset managers carried out by Liquidnet also suggests a lack of confidence about meeting the deadline, particularly around best execution requirements.

Just 6% of buy-side firms surveyed by Liquidnet said they are currently ready to meet MiFID II’s best execution rules.