Case Studies

Asset Manager: MiFID Compliance

Client contact:   Chief Operating Officer

Parkwell staff:    1 senior consultant

Objectives and project background

The Markets in Financial Instruments Directive (MiFID) is an EU directive and is due to be implemented by November 2007 and replaces the existing Investment Services Directive (ISD).

MiFID introduces new and more extensive requirements beyond the current regulatory framework with which our Financial Services Authority (FSA) regulated client would need to comply. The client needed to:

  • Review the large volume of guidance papers being issued by the FSA.
  • Understand the requirements of the new MiFID provisions relevant to its business.
  • Complete and agree a comprehensive impact assessment.
  • Based on the assessment, detail and agree an implementation plan to ensure compliance.
 

Anticipated benefits

  • Understand the relevant requirements detailed in MiFID.
  • Understand the impact of the new requirements, identify and agree tasks necessary to ensure compliance.  This allowed resources requirements and budgets to be planned effectively.
  • Formally agree on an implementation plan to ensure compliance by November 2007.
 

Scope and boundaries

  • Agree the composition of the MiFID project board.
  • Establish the scope of the MiFID project.
  • Monitor and report project progress to the project board.
  • Review all consultation and supplementary guidance papers issued by the FSA.
  • Agree a MiFID framework that divided the Directive into relevant and manageable component parts for the business representatives to assess.
  • Manage the production of detailed gap analysis documentation by the business representatives. This analysis included the facilitation of workshops, interviews, and reviewing policy / procedure documentation.
  • Produce and sign-off an implementation plan.
 

Deliverables

Project governance

  • Project Brief and Project Initiation Document
  • Project plan
 

Impact assessment

  • A framework breaking MiFID into relevant and manageable component parts for the business representatives to analyse
  • Comprehensive MiFID gap analysis documentation based on the FSA guidance.
  • MiFID implementation plan. The plan contained details of:
      1. Tasks and milestones
      2. Resource requirements
      3. Timescales
      4. Dependencies and constraints

Project conclusion

The project was a success meeting its acceptance criteria.


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