Are you compliant with MiFID? FFW launches free online ‘MiFID Health Check’
28 March 2007
The Markets in Financial Instruments Directive (MiFID) is one of
the most far-reaching EU legislative measures in the financial
services sector for many years and a range of institutions will for
the first time be regulated in detail in relation to their
outsourcing arrangements. City law firm Field Fisher Waterhouse LLP
(FFW) believes that many organisations are not ready for the 1
November deadline to comply and has launched www.mifidcheck.com, a free
survey for financial sector organisations that want to check
whether their outsourcing arrangements are compliant with
MiFID.
MiFID is a core instrument in the EU’s plan to create a single
European market in financial services. It was transposed from an EU
directive into national law on 31 January and the deadline for
compliance is 1 November this year. MiFID affects banks, investment
firms, traders, fund managers, financial advisers and operators of
exchanges and trading platforms, as well as technology and service
providers aiming at the financial sector.
The Directive has a major impact on outsourcing
arrangements. The financial sector will need to ensure
outsourcing contracts comply with the new regime and when selecting
new suppliers will have to do adequate due diligence to ensure the
companies they are outsourcing to are reliable and compliant. They
will also need to renegotiate with current suppliers where their
present contracts are not tough enough.
Firms should therefore be reviewing all the contracts and
changing their policies now, ready for the November deadline.
Suppliers will need to grapple with the change and be ready to meet
new customer-driven requirements.
FFW’s survey will allow those concerned about their outsourcing
arrangements complying with MiFID to undertake a 10 minute ‘MiFID
Health Check’ which will give information on how well they are
complying and provide a report on areas for concern.
FFW are currently advising a number of financial institutions on
the implications of MiFID. FFW technology partner Simon Briskman said:
“With the deadline for compliance fast approaching all financial
institutions that outsource business processes and IT functions
need to ensure they are on top of the new regulation. Those who do
not may find themselves backed into a corner when negotiating with
suppliers.”
For further press information please contact:
Louise Eckersley, PR Executive on +44 (0)20 7861 4120
Scarlett Yianni, PR Assistant on +44 (0)20 7861 4795