Category: Articles, Blog, Blog Post Tags: Post Date: January 4, 2018

Avoiding Common Compliance Pitfalls

With the MiFID II deadline upon us, we wanted to take a look at some of the biggest obstacles our clients face when meeting regulatory requirements. We believe there can be challenges around the interpretation of the legislation, false leniencies early on and sacrifices by firm management when becoming compliant. Please read below to see how we are helping our clients avoid these common pitfalls.

Legislation interpretation

MiFID II legislation looks no different than what we have seen with major legislation in the United States. The rules around the legislation are what determine what the law really means. However, there is a lot of vagueness around these interpretations.

According to the Financial Times, part of the problem is that MiFID II stems from a revised EU directive from 2014, which was broad and unclear. Even now regulators are admitting to uncertainty around translating complex and technical standards into general legal principles for practical, workable market rules.

False leniencies

Another obstacle our clients face is that agencies usually assure everyone there will be leniency at the beginning. These words are sweet, but four years later when the auditors and attorneys come knocking at your door no one seems to remember the leniency promised.

Since there is still so much confusion around MiFID’s overhaul and the law goes into effect in just a few weeks, according to Bloomberg, UK regulators say they won’t crack down on firms that have “tried hard” to get ready for today’s deadline. But how hard do you have to try and what’s to say regulators will remember this promise a few years down the road?

Compliance costs and commitments

Finally, financial institutions are expected to comply with the latest interpretation regardless of the time to build compliance structures or the cost of complying. A key point is the commitment required by the highest level of management to assure compliance. This time commitment is a major distraction from running the business and making a profit for the firm. Business growth and evolution may be put on hold as your best and brightest focus on regulatory compliance.


As we come to the MiFID II deadline, we are staying up to date on legislation interpretations and changes. We are also providing cost-effective solutions that keep our clients focused on strategic initiatives. If you would like to learn more about how we can help you, please contact