By Marlon Arthur, Client Relationship Manager, Alpha Insight
The new requirements under MiFID II threaten yet another set of regulations that banks will probably feel they have to answer with more technology.
Just as they are coming to terms with the demands of the Basel Committee on Banking Supervision, here come yet more highly-detailed reporting requirements that have to be built into the risk and control processes of banks and investment firms.
Faced with this tough new set of demands, institutions may all too easily fall into the trap of installing yet more technology on top of an already complex system built up over time to serve other purposes and functions.
Yet with little more than a year left until MiFID II is in force, it is now imperative that banks turn their attention to achieving control over the processes by which they will achieve compliance and the mechanisms that will enable them to mitigate the risks of failure effectively.
Devised by the European Commission and scheduled to come into force in January 2017, the broad range of complex provisions collectively known as MiFID II will further extend the original MiFID of 2007.
The aim is to increase protection for investors, harmonise regulation across the EU, boost competition in financial markets and give enhanced supervisory powers to regulators.
Reporting will be fundamental to the achievement of these aims, through insistence on greater levels of transparency.
The basic obligation is for investment firms executing transactions to report to their national regulator, which in the UK is the FCA, “as quickly as possible” and no later than the close of the following working day.
A transaction, as proposed in the draft regulation, covers the acquisition, disposal or modification of a reportable financial instrument, but excludes certain activities such as stock-lending. The new reporting regime will be extended from preand post-trade requirements, for example, to non-equity and equity-like products.
In both of these cases, MiFID II will impose a requirement for transaction reports at a greater level of detail, requesting the identity of the trader or the algorithm responsible for executing the trade and any client on whose behalf it was made.
MiFID II will also require eligible over-the-counter (OTC) derivative contracts to be subject to transaction reporting, along with commodity derivatives. Reports on the latter will be made to trading venues, which will conduct all necessary monitoring and enforce position limits, as and when required.
Firms may file reports either directly or through an “Approved Reporting Mechanism” or through the trading venue they have used for the transaction.
Overall, the reporting likely to be demanded of institutions under MiFID II will be dramatically widened in scope, with the number of data fields required going up from 23 under MiFID I to more than 80 under MiFID II. Furthermore, only 13 of the MiFID I fields survive without amendment.
Alongside a much greater number of fields, firms will also have to take greater pains about identification. Each client will have to be identified under a standardised format. The detail required even runs down to the ID or passport numbers for traders making investment decisions and executing transactions.
Accuracy in reporting is going to be essential. The FCA, for example, has already stated it is concerned about over-reporting.
The upshot is that banks and investment firms will have to demonstrate that they took action to correct errors, if for instance, they have been relying on the analysis of a limited sample of reports from their counterparties.
Each bank will need to adopt its own approach to risk, control and compliance, since each institution has a subtly different set of operations and supporting systems. Purchasing an off-the-shelf solution is unlikely to yield the responsiveness required, simply adding another complicated layer.
Instead, each investment firm or bank needs to establish a key set of KPIs and embed them into its everyday processes.
By taking the right approach to this process, they can avoid three pitfalls that are likely to open up as we enter the uncharted waters of MiFID II.
Firstly, although banks obviously need metrics for compliance purposes, they should avoid defining metrics that are outside their normal operational processes. Defining KPIs simply to address the regulation will result in extra complications that achieve little or nothing.
Secondly, firms must not treat MiFID II monitoring as an activity that must be kept separate from other management activities. For example many risk metrics rely on data in files. Missing or late files could result in unreliable risk assessments, which in turn could understate or overstate the level of exposure.
If organisations approach compliance monitoring and measurement in the round in this way, they can use the same set of metrics, monitoring and measurement solutions and metric performance data not only to measure compliance but also to proactively identify potential process-breaks or IT failures that could result in inaccurate risk reports and potentially, non-compliance and fines. Early warning signs of potential breaks or failures could trigger actions to remediate the situation prior to the problem becoming critical and affecting compliance.
This level of highly effective prevention requires considerable expertise in flow monitoring so that deep understanding of what is required is combined with smart thinking to shape the KPIs that determine compliance with MiFID II reporting.
If investment firms succeed in making these KPIs precise, sensible and measurable, they can put themselves in control of compliance. The triggering of early-warning alerts gives them the capacity to step in immediately to prevent process breaks. This puts the firm on the front foot, rather than relying on retrospective red-light compliance indicators.
While it is true that banks often have numerous monitoring and control systems, faced with MiFID II, their response should not be the procurement of further applications and tools that do yet more monitoring. That way they can avoid the third likely pitfall, which is wasting budget.
Rather than unnecessarily procuring additional solutions to monitor and measure the admittedly rather challenging requirements of MiFID II, banks should capitalise on the IT monitoring solutions they have already invested in.
By combining expertise in investment and banking sector flow monitoring with risk controls embedded within the key processes so as to capitalise on existing IT monitoring tools, meaningful real-time insights can instantly become available without the need to make additional investments.
How You Can Make Money From Home
There is no secret to making money online, the only secret is your persistence. Hidden away between the tips on starting a wine club, taking up a photography club or joining the wine revolution, there are smart tips that anyone could use to earn money online without having to quit their day job. We have written lots about the many ways people abroad to help finance their lives.
A good place to start with online jobs is with paid surveys. Surveys pay for your time and allow you to earn a bit of extra cash. The reason you will be able to earn more than what you are actually worth is that a survey company will pay to send you their questionnaire so that you can answer it. The more accurate and detailed your answers the more likely you are to get paid.
There are many survey companies available, you need to choose wisely and carefully as some surveys are paid better than others. For example, you may get paid well if you give an opinion on the health of wine or food. You may get paid just as well if you offer an opinion on which type of music you like.
Another great way to make money online is to write articles. You could write an article and then sell it to an affiliate. If someone likes what they read you will get a commission.
If you are unable to write or if you do not have the time, you could hire someone to write for you. This could be someone who has experience in web content writing or a freelance writer. You could also sell your own articles on an affiliate website such as Clickbank or Commission Junction.
It is easy to make money, it can take some time but it is definitely possible. All you need is determination and discipline to keep at it.
Many people overseas have chosen to live off the grid lifestyle. There are many benefits to living this way and one of them is being able to make money from home.
There are also a lot of opportunities to make money doing research online, there is a constant increase in the amount of knowledge that is available to the public. It is much easier to research and discover new ways of earning money. and you can get started in a short space of time. So, I encourage you to give it a go.
One of the easiest ways to make money online is by becoming a blogger. It really is very easy to become a blogger. Just type ‘blogging’ into Google and then fill in all the details. It is easy and it can even start to look lucrative.
Blogging is a good way to earn money if you have an understanding of the basics. You need to write about something that interests you. This could be about your family life, your interests or even a hobby that you like.
Once you have set up a good website for your blog, the next step is to get visitors to it. One way of doing this is by putting up advertisements. This is just the same as writing articles for other websites.
Some people choose to make money by selling products. You can do this in two ways, through a site such as eBay or through affiliate marketing. You could sell e-books or products related to the niche you are blogging about. The great thing about eBay is that there is always a steady flow of visitors.
These two ways are only two of the many ways to make money online. I recommend you look at all the options and find the ones that work best for you. Once you have found them, you will never stop learning about ways to make money online.
How To Avoid the Risks of Poor Credit
Security Finance is an unsecured debt collecting agency that, via a network of affiliated companies, provides “secure” personal loans to consumers who may otherwise struggle to meet their existing debts. Their loans are generally short-term, and their conditions often vary dramatically from those of traditional short term personal loans. The services they provide can be invaluable to both the consumer and the lender.
Security finance offers a wide variety of loans. These include: home equity loans, revolving credit lines, commercial and business loans, car and motorcycle loans, and other types of unsecured loans. These loans can be used for almost any purpose, and they will be more beneficial to the consumer than those offered by banks and other unsecured lenders.
Secured personal loans offer an excellent alternative to the high rate of interest paid by unsecured loans. The interest rates are often less, the terms are easier to meet, and they are often better suited to meeting a consumer’s unique financial situation. The collateral provided with the loan usually allows security that the loan will be repaid in a reasonable amount of time, with little or no difficulty.
Secured loans require the debtor to place collateral, such as his or her car, home, or other valuable asset, in order to receive the money they have been borrowing, and are therefore considered by the debt collector as an attempt to recover something that has been taken. Debt collectors will not hesitate to call a borrower who does not follow the terms of his or her loan agreement and in some cases will go as far as harassing them, calling and/or sending letters in an attempt to collect on a debt.
When applying for a secured personal loan, many borrowers are worried that the debt will affect their credit score. The fact is that there is virtually no correlation between the amount of credit available and the credit score. However, secured loans will typically have a much lower credit score than unsecured loans. This is because the borrower is putting his or her assets in a bank account where they are likely to be liquidated for payment.
It is important to remember that the loan does not negatively affect the credit history. The only time it can result in damage to a credit report is if it is reported incorrectly. If a borrower were to try to pay off a loan on a credit card that was reported as being “lost”, he or she would then be making the error a second time.
Security finance offers consumers an exceptional opportunity for personal development through the use of online applications, and the ability to make several payments on the same day to avoid late fees and penalties. This service also makes it easy to avoid late fees when paying loans off at the end of the month.
The ability to apply for secured loans online provides a tremendous opportunity for the consumer to improve his or her credit score. Security loans can provide a large number of benefits to people who are in financial difficulty, including: low cost, low rate loans, low credit, and the flexibility of being able to make multiple payments.
If you are considering applying for a secured loan but have never applied online, you should take advantage of the opportunity to make several purchases in a short period of time, rather than waiting until the last minute to apply for an unsecured loan. By using the secured finance website, you can save yourself the time and stress associated with filling out an application and can ensure that your credit report shows your financial progress accurately.
Once you have applied for a secured loan, you should also make sure that you understand the terms and conditions of your loan, including any interest rate that may apply to the loan. Be sure that you understand the term of the loan in full and fully. Do not hesitate to ask any questions that may arise. You should always contact the company directly when you feel that you are not fully clear on a matter regarding a loan.
Secured finance loans are a great way to increase your credit score while avoiding the hassle and expense of filling out and paying off an application by mail. Because the borrower is making a direct deposit of money into an account, the credit report that shows up on credit reports is often inaccurate.
How To Find Free Rates On Money Exchange
Money is a common item that can be bought, traded, exchanged or sold. This usually includes the value of the currency as well as gold and silver. Money is commonly accepted as payment of certain obligations, including taxes, and payment of certain goods and services in a specific country or socioeconomic context.
There are three money systems in the world. The first is the use of coins or other units of currency, which are available in fixed denominations. The second is barter. It involves exchanging items of utility with other items of utility. In the third system, known as fiat money, there is no central authority that decides what the money supply is, and the monetary base is determined by political will.
The most common monetary system is the gold standard, which was used as far back as ancient Greece and Rome. In this system, coins were designed to be redeemable for gold bars. Gold, however, had a relatively high price at the time, and most individuals had no access to it. Barter is much more popular today, and most people live their lives in barter, trading items with one another.
In some nations, the second money system is called paper money. Most countries have national currencies, and each government issues money in the name of their country. This type of money is not backed by anything of physical value. It is not held by the government or bank. It is simply made from paper. Since most countries use this kind of money, it is known as the official “money” of the country.
Electronic cash was introduced in 1970. This system is very similar to barter. Instead of bartering for items, electronic money is created electronically. It is created electronically to represent actual objects that can be used as payment, and then is transferred to the buyer. The process is very similar to barter, except that there are no actual goods to be bartered for. It is considered a virtual currency.
There are many different types of money, and each one has its own characteristics. Money in the U.S. has a backing and is created by the federal reserve. Money in England is backed by the pound sterling, while the European Central Bank in Germany uses the euro. has a currency known as the Deutschmark.
Each form of money has its own advantages and disadvantages. People who use different forms of money have their own reasons for doing so. Many people choose to exchange one form of money for the other, to get the best rate on an item they need or want. Some choose the same form of money for more than one transaction.
Money exchange services offer different services to help people get the best rates on money exchange. They include a variety of methods that can help someone get a better rate. Rates vary depending on the length of time you wish to get money, the size of your order, and the current value of the item you are exchanging. Some of these services can also provide you with a credit card or other form of online payment to transfer your money through.
These services are available almost everywhere. You may call around to various companies for rates, or you can check out the Internet. There are several places on the Web that will give you free quotes, and compare rates among companies. It is important that you understand the rules and regulations that govern the rates you receive from these companies before you agree to any deal.
There are several different online providers. You will often find them listed under the names of a variety of different names, such as Money Exchange, Moneygram and eCash. If you are interested in getting quotes from multiple companies, make sure to ask around for quotes from at least three. so that you have a clear picture of how much the rates will vary and from which company to go with.
Many places will offer you a variety of free quotes if you fill out a form. Others will charge a fee for this service. To get an estimate, you should send out several free quotes. and then make sure to follow up with the companies.
To be able to get the best rates, it is very important that you get as many quotes as possible from different companies on the Internet. There are many sites that you can go to. Some will charge a fee to get these quotes.
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