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28 May 2021

Supporting a leading financial service provider to seize the opportunities of MiFID II

Assessing the impact and developing a strategy for one of the UK’s leading financial service providers to comply with and leverage the strategic opportunities in response to the Markets in Financial Instruments Directive II “MiFID II”.

In the face of the largest European financial services regulation, our client needed support to prepare to operate differently across its UK and EU legal entities whilst minimising disruption to its client and counterparty relationships. Our client needed to translate over 1,000 change requirements in a timely manner to continue to meet its clients’ expectations all while minimising disruption to its growth strategy across the UK and EU.

Client Requirements

Our client’s institutional and corporate banking division sought advice to deliver across several workstreams impacting the 1st and 2nd line of defence.  They needed to understand the impact of MiFID II and how this would drive change for its UK and Non-UK operating model. As a result of the impact of the regulation, it was necessary to make significant investments in its infrastructure to ensure it was fit to operate in the post-MiFID II world and its controls environment uplifted to ensure regulatory risk and compliance standards are met across the transaction lifecycle.

They needed to assess the impact of the regulation in the context of its specific business, design the necessary changes in alignment with the regulatory expectations and implement these changes into BAU.

Baringa's Role

Baringa brought regulatory change and product experts together with our change management capability to rapidly translates and assess the impact of the draft legislation on our client’s business and formulate a ‘house view’ on the impact of MiFID II.  This enabled us to work together to pinpoint the necessary changes to the operating model to both deliver compliance and identify opportunities. 

We then produced a comprehensive set of change requirements – spanning technical systems, policies, processes and controls - describing the changes that the business needed to implement to deliver a robust, compliant solution.  With a change initiative of this size, maintaining alignment with industry peers and adapting requirements as the regulatory and industry view evolved, was key while enabling decisions to be taken at pace to meet regulatory and client expectations.

Our work resulted in our client meeting its regulatory obligations on time and in position to deliver other strategic change initiatives in alignment with its corporate strategy.

Outcomes and Impact

Our delivery approach gave senior management the confidence and transparency that regulatory obligations were adequately met whilst assuring their ability to transact safely in a post-MiFID II operating environment.

Baringa quote: “MiFID II is a hugely complex piece of markets regulation.  We supported the client to firstly understand the impact to their business and produce a set of clear change requirements that could be prioritised and implemented.  This enabled full end-to traceability that provided senior management with the clarity and evidence to demonstrate, with confidence, their compliance with the regulation. We blended a team of regulatory and industry SMEs with our change management expertise, which was crucial the client to enable the outcomes they needed”