News and Events
MiFID and CRM
MiFID (European Union Directive 2004/39/EC) was announced in April 2004 and is due to be
implemented in November 2007. If you break MiFID down, like most EU regulations it consists of
regulations and directives:
- Transaction reporting – regulation
- Pre and post trade reporting – regulation
- Client classification – directive
- Client agreements – directive
- Record keeping – directive
- Best execution – directive
- Order handling – directive
Regulations are implemented identically across the EU, however directives are interpreted
locally by the national regulator - in the UK this is the Financial Services Authority (FSA).
Looking at the above list, whatever the regulation or directive, without exception it relies
on access and management of transactional, structured and unstructured information. Much of this
information is centred on clients and in order for Financial Services firms to achieve
some of the regulatory requirements that transpires from MiFID will require existing industry
practices and Client Relationship Management (CRM) procedures to be greatly enhanced.
MiFID also specifies data retention policies on certain data types, for example firms must
maintain wide ranging client trade information for a 5 year period. Retention policies are also
relevant to identification collateral that is supplied for Know Your Customer (KYC) and Anti-Money
Laundering (AML) purposes.
There is no doubt that the CRM need within Financial Services firms is going to grow in the
future.
XMWeb provides the necessary functionality for a financial services firm to build their client
services to support the MiFID requirements.