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The survey, which polled 100 global asset managers and alternative asset managers, gauged their readiness for MiFID II coming into force in January 2018.
Designed to increase investor protection, the regulation will include new disclosure requirements linked to costs and charges, new conditions set for the design and distribution of financial instruments and increased pre- and post-trade transparency requirements across equity, equity-like and non-equity asset types.
The survey found more than half (59 per cent) of respondents overall and more than three quarters (77 per cent) of hedge funds believe pre/post trade transparency for in-scope instruments will have the greatest impact on their firms.
“The industry is adapting to a more highly regulated environment,” says Sven Kasper, EMEA head of regulatory, industry and government affairs at State Street. “More than ever, all market participants must understand proposed measures and be nimble enough to stay on top of changes to market liquidity.”
Regulations like MiFID II, though expected in 2018, are already impacting firms, with 78 per cent of respondents reporting an increase in time spent discussing regulations with senior management and boards.
Overwhelmingly, the need for trusted guidance emerged, with 76 per cent of respondents noting that education would place their firm in a better position to implement changes. The survey also found that to implement regulatory change, nearly 60 per cent of respondents believe better data and analytical tools will help navigate the increasingly complicated landscape.