Global asset managers struggling with Mifid preparations

Less than a third are confident they’ll meet November 1 implementation deadline

An Ernst & Young poll of 381 global asset managers has revealed that less than a third (30%) are confident they will definitely meet the November 1 deadline for implementing the European Union’s Markets in Financial Instruments Directive (Mifid).

Some 8% of those polled said they would not be able to comply by the deadline, and almost two-thirds (62%) are unsure that they will.

Asset managers must accelerate the pace of their Mifid preparations to ensure they are as compliant as possible with the directive – or if not, at least to ensure they keep pace with peers. Only 6% of the asset managers polled thought their organisation was ahead of peers in implementing the programme, less than a third (29%) thought they were in line, and 57% were not sure how they compared.

“This poll makes interesting reading,” says Ratan Engineer, global asset management leader at Ernst & Young. “Although some asset managers have already engaged with the real business issues that Mifid presents, such as relations with clients, distributors and brokers and the operational impact, many are just getting started.”

“Continuing regulatory uncertainty does not help, but it is essential for managers to maintain the pressure on their Mifid implementation plans. Ignorance will not be an acceptable excuse on November 1, but sensibly advanced plans and programmes should certainly help mitigate any regulatory wrath,” he adds.