'Honeymoon period' as firms escape fines for MiFID II reporting failures

FCA pragmatism 'will not last forever'

The Financial Conduct Authority (FCA) has been granting asset managers an enforcement "honeymoon period" with more than a fifth of investment firms expected to have already breached MiFID II reporting standards, according to consultancy firm Duff & Phelps.

A total of 546 out of the 3,724 UK investment firms, which must report transactions under MiFID II to the FCA, have notified the FCA of errors or omissions in their transaction reports, while 223 additional have been proactively contacted by the FCA regarding potential reporting errors, a freedom of information request revealed. Advisers struggling with MiFID II requirements amid 'regulatory fatigue' However, despite widespread noncompliance, the FCA has not yet opened any transaction reporting enforcement investigations. The FCA, which has held visits, meetings or conference calls...