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FinTech Trends Newsletter Week 2nd October – 6th October 2017
IT infrastructure and MiFID II – solving the data collection challenge
Impending data regulations are forcing almost every organisation across the globe into getting their house in order regarding data. The pressure is building at financial services companies, with the MiFID II (Markets in Financial Instruments Directive) deadline of 3rd January 2018 rapidly looming, those in the office trenches are hoping to put some clarity on its 200 directives.
Their mission is to find suitable solutions for managing the mammoth task that is transparency, transaction and reference data reporting and many are now battening down the hatches in the hope that their game plan doesn’t come unstuck in the final hours.
Teetering on the edge of the commercial cliff meanwhile is the quest to implement a set of suitable data collection and storage solutions that not only meet the legislative requirements posed by MiFID II but can also be aligned with other key components of a financial firm’s obligations.
Meanwhile, as those in the financial services industry grapple with what all this means to their IT operations, data storage and cyber security requirements, adding to the mix, the additional complication of the upcoming GDPR legislation looming large on the to-do list, it feels like a further grenade being thrust over the parapet. But what exactly does this all mean to how a firm collects and stores data? And what should firms be doing to ensure they are fully compliant by the deadline dates?
Naturally the data being collected and stored by financial firms is going to be incredibly sensitive by its very nature, so fully understanding exactly what MiFID II entails and how it fits into the jigsaw of legislation requirements is essential to understanding what remedies need to be put in place for a company’s IT infrastructure. Taking a holistic approach to appropriate IT solutions is essential to ensure that every possible angle is carefully considered – not just as a result of the changes being brought about by MiFID II, but also so that they are aligned with other directives such as GDPR, due 25th May 2018. Unfortunately, there is no off-the-shelf software package that will guarantee compliance with the host of new regulations so this requires a firm to effectively create a workflow to determine what route they should follow individually, as no two firms are the same.
With institutions growing reliance on technology and IoT, finance firms are more exposed than ever before. From employees using their own personal mobile devices to the dependence on messenger systems there is a plethora of potential pitfalls waiting to become major problems. Particularly since part of MiFID II is to ensure financial firms are recording all conversations, messages and exchanges relating to transactions, something Storm IT Financial can advise and help you with, with our MiFID II Call Recording Compliant Solutions.
Our recommendation for mitigating the risks of interception, foul practice and cybercrime, whilst remaining complaint, is to implement an MDM (Mobile Device Management) solution. An MDM solution will provide as much control as possible to mobile devices and data that is stored or processed by a company. Often companies do not know what devices are being used so this is key to providing visibility of precisely what is being operated. Businesses should also look at forming a policy that would allow individuals to use personal devices without compromising data security. Ultimately the easiest answer when it comes to data storage and compliance is for companies to limit where conversations are taking place so that they fit within the technical solutions. It may be that chat, IM or other mediums outside of the IT solutions carry a disclaimer. As with all cyber security solutions, it should be constantly reviewed and tested to ensure it still protects a company’s business practices as well as changes in workflow or governance.
Storm IT Financial can help guide, prepare & advise firms on IT, technology, communication so you can deal with the regulatory & compliance burdens now required by the FCA, MiFID II & GDPR. If you’d like more details on communications, voice call recording, data management, disaster recovery, back up, cybersecurity, regulatory & compliance technology and managed solutions for your alternative investment, hedge fund, wealth manager and private equity firm, please contact Storm IT Financial for more information.
Storm IT Financial FinTech News & Trends picks: Week 2nd October – 6th October 2017
Bloomberg is fighting back against the startup that wants to steal its lucrative Wall Street business
Bloomberg unbundles chat to take on Symphony:
Goldman Sachs has made a big hire in electronic trading
Goldman Sachs is bringing on a technology veteran to help drive its electronic trading business:
RSRCHXchange unveils new functionality ahead of MiFID II deadline
RSRCHXchange, the research aggregator & marketplace, launches its latest version of RSRCHX including mobile & desktop apps for MiFID II:
How to Survive Wall Street’s Robot Revolution
Wall Street’s robot and artificial intelligence revolution has begun:
UBS Boss Hits Out at Bitcoin – ‘It Is Only a Transaction Currency’
Weber believes that Bitcoin’s prospects as a currency are bleak, but said its blockchain holds promise:
https://www.financemagnates.com/cryptocurrency/news/ubs-boss-hits-bitcoin-transaction-currency/
FCA to launch asset management start-up hub next month
FCA’s aim is to encourage competition in industry:
https://www.investmentweek.co.uk/investment-week/news/3018269/fca-to-launch-asset-management-authorisation-hub
Does RegTech lack a ‘one size fits all’ solution?
With all the hype around the term RegTech recently, why are wealth firms are still struggling to find a solution that caters for all their needs:
Staff still in the dark over looming Mifid rules
Many staff are still unaware of the sweeping MiFID II rule changes that will effect them& their firms:
Robo-Advisors still a one-trick pony, says new report
Digital platforms of most robo-advisors have not devel- oped to meet needs of their investor & WM clients:
BNP Paribas’s Bank of the West in major technology modernisation
Bank of the West, a large US regional bank & subsidiary of BNP Paribas, is embarking on a major tech overhaul:
Hedge fund man and wealth manager Alan Miller rips into robo-advice firm Nutmeg
Former hedgie Alan Miller has ripped apart robo-adviser Nutmeg in his latest blog post:
IP Expo: GDPR – “All of us will carry a quantum of illegality”
“We will fail” says Stewart Room, global head of cyber security and data protection legal services at PWC:
