MiFID II data security paramount, warns Silverfinch
28 June 2017 London
Image: Shutterstock
Data sent to regulators as part of the second Markets in Financial Instruments Directive (MiFID II) reporting requirements must be sent and managed securely, said regulatory data exchange Silverfinch.
Silverfinch warned that the data collected by manufactures of products following the implementation of MiFID II will need to be stored correctly to avoid a third-party breach.
In-line with the new regulation, due to come into force 3 January 2018, manufacturers will be required to confirm if their products have been sold to a suitable investor, while asset managers will be required to hold data on their funds and clients.
In addition, the UK Financial Conduct Authority’s (FCA) Asset Management Market Study released a package of measures which will require more compilation of data from asset managers.
Under the new measures, rules surrounding the costs charged to the end-investor must be disclosed as a single fee for MiFID II, in an “all-in fee”.
John Dowdall, managing director of Silverfinch, said: “MiFID II already requires a monumental amount of data to be held and communicated across different parties regarding both funds and individual investors and, if mishandled, could pose a wealth of risks along the regulatory chain."
“With such large volumes of information being required, both sensitive and public, it is essential that asset managers and distributors fully prepare to meet these new rules and can assure investors that all information is protected.”
He added: “We are thrilled by the increasing interest from the industry as it readies itself for the new regulation, but want to ensure that the focus isn’t simply on complying with the new rules, but complying in a safe and secure environment.”
Silverfinch warned that the data collected by manufactures of products following the implementation of MiFID II will need to be stored correctly to avoid a third-party breach.
In-line with the new regulation, due to come into force 3 January 2018, manufacturers will be required to confirm if their products have been sold to a suitable investor, while asset managers will be required to hold data on their funds and clients.
In addition, the UK Financial Conduct Authority’s (FCA) Asset Management Market Study released a package of measures which will require more compilation of data from asset managers.
Under the new measures, rules surrounding the costs charged to the end-investor must be disclosed as a single fee for MiFID II, in an “all-in fee”.
John Dowdall, managing director of Silverfinch, said: “MiFID II already requires a monumental amount of data to be held and communicated across different parties regarding both funds and individual investors and, if mishandled, could pose a wealth of risks along the regulatory chain."
“With such large volumes of information being required, both sensitive and public, it is essential that asset managers and distributors fully prepare to meet these new rules and can assure investors that all information is protected.”
He added: “We are thrilled by the increasing interest from the industry as it readies itself for the new regulation, but want to ensure that the focus isn’t simply on complying with the new rules, but complying in a safe and secure environment.”
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