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Regtech firm Qomply and Bovill, a global financial services regulatory consultancy, are partnering to supply cloud-based technology to firms who are burdened with the rules of second Markets in Financial Instruments Directive (MiFID II).
The UK’s transaction reporting regime under MiFID II has changed as a result of Brexit, including connected obligations such as the requirement to submit financial reference data.
This includes the need for trading venues to make transaction reports on their venues by their European Economic Area (EEA) members, and EEA firms in the temporary permissions regime who operate through a UK branch to start transaction reporting to the Financial Conduct Authority (FCA).
Regulators are now expected to be less forgiving of issues now that firms have had to bed-in their solutions and processes, according to Qomply. Recently, the FCA disclosed that 362 firms had submitted transaction reporting errors and omissions to the FCA between January 2020 and the end of October 2020.
Qomply says it “routinely” sees error rates of upwards of 25 per cent on transactions already accepted by the FCA illustrating the need for action
The FCA further disclosed that for the same time period, it held visits, meetings or conference calls with 58 firms for the specific purpose of discussing transaction reporting under the Markets in Financial Instruments Regulation (MiFIR).
Responding to this demand for improvement in reporting tools, Bovill, powered by Qomply’s technology, aims to streamline its HealthCheck services to provide clients with immediate feedback on the accuracy and completeness of their transaction reports and identify areas to strengthen.
When requested, Bovill promises to complement these findings with an end-to-end review of the operating model, framework, governance and systems and controls as well as guidance through the remediation process.
In a joint statement, partners suggest that Bovill’s integration of Qomply technology means clients benefit from an efficient and collaborative solution with the Bovill team of regulatory professionals who can interpret the results and assist in remediation with the regulators.
Michelle Zak, co-founder of Qomply, says: “The partnership with Bovill will offer our clients the comfort of having a team of regulatory experts on-hand to guide them through the increasing complexity of the regulations.
“Qomply is able to offer clients the ability and flexibility in determining when to escalate issues to a regulatory professional. This puts our clients in control of receiving the advice they require for trickier aspects of remediation and maintenance of sound operating models.”
Damon Batten, practice lead, capital markets at Bovill, adds: “The partnership comes during a time where firms are seeking more efficient and productive solutions to their regulatory infrastructure. Qomply matches the Bovill ethos of delivering flexible, client centric services, which is increasingly important at a time of significant challenges of new and evolving regulations.”
