MiFID II & RPA How Robotic Process Automation can help with the challenges of implementing MiFID II regulation

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Society is ever evolving, and laws are made within this dynamic context to protect society’s greater interests. There are several examples of laws being changed and modified, or at times reversed, in line with contemporary ideals and current affairs. One such evolution that has spanned almost a decade is MiFID and MiFID II.

In 2007, MiFID was brought in as a cornerstone in the EU’s efforts to create a single financial market. It was a quirk of fate that as MiFID was implemented there were storm clouds brewing across the Atlantic which resulted in the greatest financial crises witnessed in a generation. It also exposed the inherent flaw in MiFID to focus on equities alone. With this backdrop a modified version was conceived and after several delays, it came into force on 3rd January 2018 and became known as MiFID II.

Today, MiFID II has changed the financial industry for the better. Affecting banks, wealth managers, asset managers and the like, the consumer is at the forefront of this regulation with MiFID II ensuring that financial institutions are completely transparent with their clients. This means that there has been an increase in data processing and handling as the essential actions for firms are transaction reporting, ex-ante and ex-post cost disclosure, and reporting losses.

The implementation of MiFID II was high impact because although the regulation looked to curb any grey areas, its nature made it exceedingly difficult to implement manually. Technology is required for this level of data handling and, in 2016/2017 in the run up to the deadline, IT and FinTech companies were tasked with catering to their clients’ regulatory needs.

This was either by making changes to already implemented systems or by offering new platforms that had built in compliance mechanisms. By now we are sure that all financial institutions will have put in the relevant leg-work to ensure compliance. However, even when the law was conceived it aimed to leverage emerging technologies to its benefit, and we can’t help but notice that MiFID II is tailor-made to today’s world and seems to be perfectly complemented by Robotic Process Automation (RPA). A software robot or Digital Workmate can be trained to process data and information that is repetitive in nature and perform tasks that use computer systems by following a fixed logic or set of rules. When such an activity is executed by a Digital Workmate, it is known as Robotic Process Automation or RPA.

Society is ever evolving, and laws are made within this dynamic context to protect society’s greater interests. There are several examples of laws being changed and modified, or at times reversed, in line with contemporary ideals and current affairs. One such evolution that has spanned almost a decade is MiFID and MiFID II.

In 2007, MiFID was brought in as a cornerstone in the EU’s efforts to create a single financial market. It was a quirk of fate that as MiFID was implemented there were storm clouds brewing across the Atlantic which resulted in the greatest financial crises witnessed in a generation. It also exposed the inherent flaw in MiFID to focus on equities alone. With this backdrop a modified version was conceived and after several delays, it came into force on 3rd January 2018 and became known as MiFID II.¬

Today, MiFID II has changed the financial industry for the better. Affecting banks, wealth managers, asset managers and the like, the consumer is at the forefront of this regulation with MiFID II ensuring that financial institutions are completely transparent with their clients. This means that there has been an increase in data processing and handling as the essential actions for firms are transaction reporting, ex-ante and ex-post cost disclosure, and reporting losses.

The implementation of MiFID II was high impact because although the regulation looked to curb any grey areas, its nature made it exceedingly difficult to implement manually. Technology is required for this level of data handling and, in 2016/2017 in the run up to the deadline, IT and FinTech companies were tasked with catering to their clients’ regulatory needs.

This was either by making changes to already implemented systems or by offering new platforms that had built in compliance mechanisms. By now we are sure that all financial institutions will have put in the relevant leg-work to ensure compliance. However, even when the law was conceived it aimed to leverage emerging technologies to its benefit, and we can’t help but notice that MiFID II is tailor-made to today’s world and seems to be perfectly complemented by Robotic Process Automation (RPA). A software robot or Digital Workmate can be trained to process data and information that is repetitive in nature and perform tasks that use computer systems by following a fixed logic or set of rules. When such an activity is executed by a Digital Workmate, it is known as Robotic Process Automation or RPA.

 

By adopting CevitrJo as part of existing systems, financial institutions are not only equipped to deal with MiFID II but equipped in the most efficient manner. CevitrJo helps organisations become both technologically and financially compliant.





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