Close to 50 percent of investment managers and consultants surveyed at Northern Trust’s (Nasdaq: NTRS) annual Regulatory and Depositary conference cited client reporting as the greatest implementation challenge presented by MiFID II.
The survey of more than 100 attendees at the annual London event held in November focused on the regulatory demands faced by fund managers who noted further MiFID II challenges including: transaction and transparency reporting (approximately 20 percent); inducements and research (approximately 20 percent) and updating client documentation (approximately 15 percent).
“The level of focus on client reporting was no surprise to us,” said Robert Angel, head of regulatory solutions at Northern Trust. “The transaction cost calculation disclosures contained within the Markets in Financial Instruments Regulation (MiFIR) are complex and will require ongoing work, even now post implementation, not only from institutional entities, but also from regulatory bodies as they look to further rationalize the relevant disclosures.”
In addition to concerns around MiFID II, the survey revealed that 65 percent of attendees expect the upcoming regulatory environment will demand an increasing amount of their time in 2018, compared to 2017.
“Whilst it’s surprising the effort spent by the industry on regulatory compliance is expected to increase, MiFID II will require ongoing efforts for the duration of 2018,” said Angel. “In addition, GDPR is fast approaching and with many fund managers focused on other regulatory change, the significance and work required for GDPR is likely to only being focused on now.”
Northern Trust provides depositary, custody, fund administration, investment operations outsourcing, and regulatory solutions to investment managers across the globe and across the spectrum of asset classes. Northern Trust hosts regular events on regulatory topics which aim to help clients understand regulatory change. This is a key aspect of Northern Trust’s ongoing strategy to support and remain close to its clients.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2017, Northern Trust had assets under custody/administration of US$10.7 trillion, and assets under management of US$1.2 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/disclosures.