KYC obstacles hamper Mifid II preparations
The extended deadline for Mifid II is now only six months away, and along with an increase in the amount and quality of data financial institutions (FIs) have to record, they must also reassess customer relationships.
There are high expectations that FIs will be ready for the extended Mifid II deadline in January, even if there are still some unanswered regulatory questions.
Laura Glynn, director of regulatory compliance at client life-cycle management software solutions provider Fenergo, says: “As the deadline has been extended to January 3, 2018, it is expected that FIs should now be on the path to compliance.
"That being said, there remains an element of uncertainty around certain key areas of the directive, like third-country access and electronic access.”
The initial issues that helped push back the deadline included FIs being concerned about the standard of data they had. The importance of having good-quality data as part of Mifid II was examined in July by Euromoney, after the announcement of the change in deadline.
Commenting at the time, Alan Samuels, vice-president and head of product strategy for reference data services at Alacra, said: "With more regulations coming into play, there needs to be both clean data and the right systems in use.
"There is a clear regulatory need for meeting high standards. This is creating more and more challenges for operational managers to build flexible, scalable processes and systems to be able to address use cases that have not yet even been articulated."