16 March 2007

finextra: Two in three European banks set to miss MiFID deadline - survey

Almost two thirds of European financial institutions are not expected to meet the November 2007 deadline for the EU's MiFID Directive, according to research conducted by BPM firm HandySoft Global Corporation.

HandySoft says its research shows that UK-based financial institutions are in a relatively more advanced state of preparation than the EU average, but nearly a third (27%) are still unlikely to comply in time.

Based on a survey of 100 European financial institutions, and a further sample of specialist corporate lawyers, HandySoft also found that only a third of European firms (33%) and just over half of UK firms (52%) have appointed a dedicated MiFID compliance officer.

But HandySoft says its survey shows that most financial firms recognise the potential to turn compliance 'burden' into opportunity for wider business process improvement.

The research revealed that that one in ten (nine per cent) of European financial firms see a great deal of overlap between MiFID implementations and other compliance tasks. A further 23% have found 'a fair amount of overlap' in transferable benefits. However 68% believe that the work and IT implementations offer only 'a little' overlap of re-usable technology with other compliance requirements.

HandySoft says the findings indicate a growing polarisation of firms into those using compliance as a platform for wider business process improvement and those who regard compliance as a 'one-off box-ticking exercise'.

Wendy Cohen, sales and operations director Emea, HandySoft Global Corporation, says: 'Utilising appropriate technology solutions should provide a valuable opportunity to explore areas of overlap with other business processes and turn the apparent burden of MiFID to wider business advantage.'

© finextra