The cost of non-compliance is what?!

| May 9 2018


Let’s have some real talk for a second, friends.


The situation around MiFID II is a powderkeg in some respects.

Here’s the essential problem: only 46% of those responsible for MiFID II within organizations are even familiar with the requirements.


Think about that for a second: 1 in 2 managers -- probably asset managers, but potentially someone in compliance given your specific org structure -- don’t fully know what they’re even managing/responsible for when it comes to MiFID II.

Now, in some respects this wouldn’t normally be a problem. Cue the cry laughter emoji face: in many organizations, tons of managers have no idea what they’re even doing. Gallup has been telling us that for years.

We’re not here to bash managers, though. We’re here to help you understand why you need to “get it” about MiFID II.

And we can start with the area most people start in companies: money.

How much will non-compliance COST under MiFID II?

The baseline can be up to 5M Euros or 10% of annual turnover (revenue). For massive enterprise, that’s not a ton of money -- although it would hurt -- but for mid-sized firms, that’s crippling.

And remember: this is all happening at the same time GDPR is rolling out (go live date of late May), and organizations need to worry about compliance and fines around that as well.

In 2017, the UK Financial Conduct Authority (FCA) was the only national competent authority (NCA) in the EU that officially imposed fines on 10 companies/individuals. (Remember: MiFID II didn’t take effect until January 3, 2018.) The total amount of 2017 fines from the FCA was 225M Euros, and the largest -- to Deutsche Bank and Merrill Lynch -- were “related to culture/governance and financial crime in the investment bank sector” and/or failing to report money.

Some have put the entire cost of MiFID II non-compliance at a staggering 800B Euros.

No one wants to lose money. So what now?

If you’re an asset manager or one of the 46% who somehow “owns” MiFID II at their org but doesn’t totally “get” MiFID II, start by reading a simple post we have about how exactly MiFID II is going to change your life.

OK, that was a good start.

Now we’re going to move to the all-star of the software-evaluation process: the demo.

In our demo, we’ll walk through:

  • Your specific challenges with web content collection, analysis, and preservation
  • How Hanzo captures complex data sources that others can’t
  • How Hanzo can help transform your strategy to ensure compliance and defensibility

Get it all started here.





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