In January's Asset Servicing Times

29 January 2024

“Inadequate quality assurance, reconciliation and remediation procedures play a crucial role in the regulator’s decision to issues these penalties. Although, there have been no enforcement actions, in terms of fines related to MiFID II, we have seen an increase in regulator contact related to poor data quality,” observes Sophia Fulugunya, Director of Transaction Report for regulatory technology firm Qomply.

Fulugunya shares her insight on the reconciliation requirements: “The requirement to conduct regular reconciliation, remediate issues and complete back reporting is one of the most burdensome areas of transaction reporting requirements. Not only are ARMs charging punitive fees for resubmissions, but there are many firms that do not have the in-house expertise nor the technology to meet their requirements.”

“At Qomply we offer a service that enables firms to focus on their core business whilst we operate aspects of their transaction reporting. The highest level of interest has been from firms that submit between 10,000 – 500,000 transaction reports a year. We’ve seen that, through the managed service, these firms save up to 50% of their reporting costs. This accounts for internal resources, ARM costs, additional quality assurance tools and external regulatory advice. This approach allows for risk mitigation and confidence that their reporting requirements are aligned with the regulator’s expectations," adds Sophia.

The landscape of MiFID II transaction reporting reconciliation and remediation is complex, demanding resources, expertise, and proactivity. Firms should ensure that they are doing everything to meet their obligation in this area. There is an industry expectation that it is only a matter of time before enforcement action on MiFID II becomes a headline.

Read more here: Asset Servicing Times, January 2024 Edition

About Qomply

Qomply empowers financial firms of all sizes to meet their regulatory transaction reporting requirements (MiFID, EMIR, SFTR, and ASIC) with best-in-class cloud-based technology solutions that are easy to use at affordable price points.

Our award-winning ReportAssure platform, powered by our proprietary assurance engine, delivers one of the most comprehensive arsenals of accuracy checks in the industry, ensuring our customers’ transaction reports are as complete and accurate as possible.

By offering affordable, modular subscriptions, we enable financial firms of all sizes to benefit from high-quality, regulatory reporting technology, choosing from a menu to suit all appetites.

For more information, please contact Qomply, on +44 (0) 20 8242 4789 or info@qomply.co.uk

Follow Qomply on social media on Twitter (https://twitter.com/QomplyRegTools) and LinkedIn (https://www.linkedin.com/company/qomply/)

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