Spring World 2018

Conference & Exhibit

Attend The #1 BC/DR Event!

Spring Journal

Volume 31, Issue 1

Full Contents Now Available!

Tuesday, 27 February 2018 15:09

Don’t Put All Your Compliance Eggs In The MiFID II Basket

Why “Minimal Viable Compliance” Can’t Be the Goal

Major regulatory deadlines often lead firms to settle for minimum viable compliance – taking whatever action is needed to avoid regulatory scrutiny, regardless of the cost. But this approach inevitably leads to an inefficient, patchwork approach to compliance, where new procedures are created for each new regulation. As firms move past the MiFID II implementation date, the sheer size and complexity of this new regulation may finally be giving firms the impetus that’s needed to change their approach.

When major regulatory deadlines loom large, there’s an inevitable tendency for the financial industry to scramble for minimum viable compliance. In layman’s terms, this means doing whatever it takes, regardless of the expense, just to keep the prying eye of the regulator away. Ring any recent bells? The trouble is, while taking this approach may seem like a sensible option now, it’s unlikely to service future requirements and actually goes against the spirit of the regulations. This is why, as the post-January 3rd dust starts to settle, financial institutions need to quickly adjust to ensure compliance with all regulations, not just MiFID II.