MiFID II is on everyone’s minds at the moment! Like it or not, the impending deadline is fast approaching and the question to you is....are you ready?
Over the past 12-24 months, the banking industry has been focusing on how to set up project teams to work out how to implement MiFID II. This mandatory initiative is arguably the furthest reaching set of changes to the financial market regulation world that we have ever seen and the aim is to tighten up the European trading landscape.
As we all know, the MiFID II legislation is broken into a cross section of workstreams including; transaction reporting, investor protection, best execution and algorithmic trading. On review, perhaps the widest implication is the change in requirements for the recording and archiving of telephone calls and the purpose of MiFID II is to broaden the scope to what is currently being done. Anyone involved in the advice / process leading to a trade will be subject to having conversations recorded and this applies to both landline dialogue and mobile phones. Furthermore, since a large part of upcoming changes relate to record keeping, the directive also mandates that organisations must store and secure all of these recordings of phone conversations for five years. As a result of this we have seen a number of requirements come through from various banking institutions requesting business analysts with experience of order record-keeping. This is a very specific need and therefore the demand for these candidates has caused a tug of war creating a spike in day rates as supply and demand economics works at its fiercest.
With around 9 months left until the deadline, a key challenge many organisations must address is ensuring they have the right infrastructure in place to achieve compliance. For those that don’t have the necessary in-house solutions, a variety of call recording and archiving options are available which can help achieve compliance right away. However, in a market saturated with technology, deciding what solution you require can be difficult but whichever option is chosen, a highly robust call recording solution is critical. As a result of the above and the banks going through the various vendor selection processes, recruitment agencies have been tasked with finding candidates who have gone through the process before. This is not the right time to take a gamble so the banks are looking for people that have experience of successful vendor selection for regulatory change previously. These professionals add significant value so rates for these candidates have risen.
The scale of the complex technical challenges around MiFID II has meant that many organisations are still unprepared for the full impact of the new regulations. With the deadlinefor compliance not too far away, it is imperative that these organisations immediately prioritise the task at hand. Thankfully, those that are affected by MiFID II are not limited to just a few avenues that they can go down for compliance, as there is an abundance of solutions available from vendors. However, the financial institutions must take care in choosing a solution that will actually help the organisation to achieve all of its compliance goals, rather than just some of them.
As a recruitment specialist who focuses on the MiFID II projects market, we are still busy placing business analysts and project manager’s into a variety of banking institutions. If you have experience of successful regulatory change delivery or a background in MiFID II, the Morgan McKinley Projects Team would be very keen to discuss the market with you. Likewise, if you are running a MiFID II Programme and would like help with finding experts for your team, I would be happy to meet with you to discuss your requirements.