MiFID II delays prompt ‘wait and see’ approach to compliance

The one-year delay in MiFID II means more companies are taking a step back.

The delay in the publication of the regulatory technical standards (RTS) for MiFID II has led to an increased ‘wait and see’ sentiment to compliance, according to new research.

Instead of incentivising companies to ramp up and take a ‘mobilise early’ approach to the regulation, firms are relieved the rules aren’t here just yet and delaying their response.

GreySpark Partners wrote up its findings in a paper looking at the delays to MiFID II and the effects it has had on financial markets companies.

The paper explained: “Rather than continuing to race to the proverbial finish line of regulatory compliance… companies are instead noticeably taking a step back from the marathon in choosing to reallocate dedicated budgets and staff to more strategic tasks until there is sufficient clarity company-wide as to what the precise steps toward full implementation of the rules within the organisation must be.”

Firms who have taken a more ‘wait and see’ approach to the MiFID II regulation are now taking the time to asses the “agility, flexibility and scalability of their underlying technology architecture,” GreySpark said.

Companies consider solid infrastructure for compliance as a “necessary first step designed to make it easier” to implement MiFID II.

However the delays are encouraging firms to take a holistic approach when upgrading technology for compliance.