the upcoming year, a number of new regulations come into place: January 3 2018, MIFID II will go live, requesting some 10.000 investment companies to adhere to the MIFIR / MIFID II regulation issued by the ESMA. License holders are expected to report on the price of the vast majority of their financial transactions within 15 minutes. Transactions must be reported at T+1 to the local competent authority. Companies have to give insight into the background of their investment decisions, and provide a track record of the processes that take place in their organization.
At the same date PRIIPs and the creation of associated Key Information Documents (KIDs) becomes effective, designed to improve the quality of information provided to consumers. The European Commission is using the category of packaged retail investment and insurance-based products (PRIIPs) in order to standardize the information provided to the consumer. The stated purpose is to provide clarity on what is actually being purchased, free of jargon and complexity. This will also allow for better direct comparison between different products that meet a retail investor’s stated aims, for example the difference between using a stock fund versus a bond fund to accumulate capital for a down payment on a house.
May 25 2018 GDPR kicks in, a large overhaul of the previous directive dated 1995. Like MiFID II, GDPR impacts the business processes, making rights of individuals explicit. The GDPR aims primarily to give control back to citizens and residents over their personal data and to simplify the regulatory environment for international business by unifying the regulation within the EU. Penalties are substantial: organizations in breach of GDPR can be fined up to 4% of annual global turnover or €20 Million (whichever is greater).
Matterhorn offers services and solutions that help to manage the above challenges. Read more about our MIFID services and solutions.