Implementation of MiFID II and FIDLEG/FFSA and other provisions on financial market regulation and client protection in connection with financial transactions will bring renewed major changes to service provision and significantly influence compliance organization and the corresponding processes and controls.

In the wake of the financial crisis, a European initiative led to the creation of various new regulatory requirements. One of the objectives was to counteract the negative trends as well as any systemic failings within the financial industry. MiFID II is designed to modernize market structures and harmonize financial market regulation within the EU, but it also sets out to increase market transparency and in particular improve investor protection.

Careful and correct implementation of MiFID II or corresponding localized regulations is essential for Swiss and foreign banks if they are to secure their access to markets in Europe in the future.

Nevertheless, internalizing the new provisions can only take place in the context of other regulations and no longer as an isolated initiative, an undertaking that brings with it some complex challenges.

The requirements relating to client protection and the sale of financial services must be prepared and introduced in coordination with other regulations, such as those on money laundering, client identification or requirements in connection with FATCA or the automatic exchange of information (AEI).

Another of the aims of MiFID II, however, is to stabilize the infrastructures and indeed the financial markets themselves, in the process transferring off-exchange trading to what are known as Regulated Markets (trading venue requirement). The planned increase in trading transparency (pre and post trade) and additional reporting requirements are likewise intended to play a role and, as already mentioned, must be coordinated with regulations with a similar purpose such as EMIR (EU) and FinFraG/FMIA (CH).

Depending on the direction and orientation of a bank’s business model, MiFID II and the related regulations have different but by no means insubstantial effects on the operative business and hence the medium and long-term success of the bank.

Careful consideration and planning of tactical and strategic measures to internalize the new regulations help you to achieve manageable and efficient implementation. We are here to assist you, both in evaluating your options and in planning, development and implementation of your regulatory change project.