Both the Financial Conduct Authority (“FCA”) and Cyprus Securities and Exchange Commission (“CySEC”) have made it clear that one of their main focus areas in 2019 is to review and continue monitoring investment firms’ MiFID II and EMIR transaction reporting compliance.
The FCA’s Supervisory Priorities
The FCA noted in their Business Plan for 2019-20 that they will continue to examine how investment firms are implementing MiFID II, stressing that they will continue to build on the use of MiFID II transaction reporting data to help detect market abuse.
The FCA will carry out further work on investment firms’ compliance with regulatory reporting and evaluate the effect of the policies brought in by MiFID II.
CySEC’s Supervisory Approaches
CySEC have stated in the Supervisory Priorities for 2019 document that they will continuously monitor Cyprus Investment Firms’ (“CIFs”) compliance with their regulatory obligations under MiFID II, MiFIR and EMIR, particularly in areas that entail significant risks to investors and market stability.
With regards to the EMIR framework, CySEC will also focus on the data quality reported to the Trade Repositories.
For MiFIR and MiFID II, CySEC will analyse current events for each sector and investigate potential drivers of poor outcomes for investors and market stability, by focusing on:
- product governance requirements,
- obligations to provide certain information to clients or potential clients,
- appropriateness assessment obligations,
- transaction reporting requirements,
- transparency requirements,
- inducements and remuneration requirements, and
- information on cost and charges requirements.
How can TRAction assist you to stay compliant with MiFIR and EMIR reporting?
We provide ongoing support to our clients and make sure they are informed in respect of their MiFIR and EMIR reporting obligations.
If you would like to know more about our services, please contact us.
Emma works in our Sydney office. At TRAction, she works on implementing changes to regulations, improving and expanding our regulatory reporting services and helping with new business initiatives. She has over 7 years’ experience in the finance industry with more than 5 years’ experience specialised in transaction reporting. She worked for one of the largest financial services organisations in the UK and then moved to Australia in November 2018 to join TRAction.