Client Success Story
MiFID Programme Support
Background
Our client a major banking group had set up a MiFID programme but wanted independent assurance that the programme was robust and comprehensive enough to deal with the complexity and pervasiveness of MiFID impacts on the business.
The Challenge
MiFID affects both the manufacture and distribution of products however these functions were carried out by different legal entities each with its own organisational structure. Furthermore the programme team had already carried out an initial impact and gap analysis involving key stakeholders from the business and there was a reluctance to carry out another full gap analysis.
The Solution
Huntswood worked closely with the client to avoid duplication of existing work. Using a combination of focussed workshops and our MiFID programme acceleration tool to generate a detailed list of MiFID requirements for each area of their business. The acceleration tool generated graphical and data representations of the current state which was reviewed with key stakeholders and backed up by our qualitative assessment of the regulatory gaps.
The Result
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Significant reduction in regulatory risk through the identification of key gaps in the programme and development of a more robust programme structure comprehensive enough to deliver MiFID compliance.
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Acceleration of the client’s MiFID programme saving 3 to 4 months of additional work.
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Up to 400% return on investment by avoiding having to use scarce business and project resources to carry out a full repeat gap analysis and avoidance of the negative impact this would have on the perception of the project inside the business..
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A more comprehensive understanding of the impact of MiFID on the client’s business.
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Knowledge Transfer from Huntswood to the client.
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Huntswood’s View
MiFID will impact all financial services firms that provide investment services and the exchanges they trade in. The true impact of MiFID will vary according to the level and type of investment services, but the impacts are so pervasive and complex that it will be several years before we understand the full extent of these.
Planning for the November 1 deadline without having all the information available is extremely difficult. The Committee of European Securities Regulators (CESR) has yet to provide feedback on key areas of regulatory convergence which could impact FSA policy and the rules with which you will have to comply.
In order to implement business and IT changes in time for the deadline all firms need to make assumptions about the outcome and building these assumptions can only be based on a thorough quantitative and qualitative analysis of the information available. Huntswood’s expertise enables client’s to rapidly confirm gaps in their programme whilst significantly reducing regulatory risk.
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