Data security for MiFID II is paramount, says Silverfinch
Regulatory data exchange Silverfinch has highlighted the importance of ensuring all data is securely stored and managed in the lead up to the regulatory step change of MiFID II.
From 3 January 2018, MiFID II product governance will require manufacturers of products to collect information from their network, confirming if products have been sold to a suitable investor. The regulation also requires asset managers to hold and communicate increased amounts of data on their funds and clients. Much of this data will be sensitive, personal information which will need to be stored correctly to avoid any third party access.
On top of this, the FCA’s Asset Management Market Study, has today revealed a package of measures to be introduced into the asset management sector, including rules surrounding the costs charged to the end investor to be disclosed as a single fee for MiFID II. This will require additional compilation of data from asset managers.
John Dowdall (pictured), managing director of Silverfinch says: “MiFID II already requires a monumental amount of data to be held and communicated across different parties regarding both funds and individual investors and, if mishandled, could pose a wealth of risks along the regulatory chain.
“Today’s report from the FCA, which concentrates on the need for an ‘all-in’ fee for end investors, will require even more data assessment for asset managers when selling a product.
“With such large volumes of information being required, both sensitive and public, it is essential that asset managers and distributors fully prepare to meet these new rules and can assure investors that all information is protected. We are thrilled by the increasing interest from the industry as it readies itself for the new regulation, but want to ensure that the focus isn’t simply on complying with the new rules, but complying in a safe and secure environment.”