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FIDLEG/MiFID II Compliance

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Are you FIDLEG/MiFID compliant
and as such prepared for the
increasing competition caused by
regulation?

Competitiveness is the essential prerequisite for the viability of any bank, regardless whether regulatory compliance is explicitly required. Major challenges currently lie in responding to massive competitive pressure and the resulting falling margins and profitability. In addition, the wave of regulatory requirements is creating new obstacles for banks. To take heed of these developments requires the implementation of efficient processes rendered possible by Intelligent Technologies and methods which use sophisticated approaches to comply to regulation, whilst improving the client benefit and creating a competitive advantage for the banking institution.

The EU implemented MiFID with effect from 2007. Due to insights from the financial crisis and the technical progress achieved in the financial markets, the EU aims to strengthen its current regulatory framework to increase investor protection and the competitiveness of the financial markets. With the revision of the MiFID regulation in the form of MiFID II, the initial goals will be set higher to mitigate the risk in financial systems as a whole.

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In the context of the EU regulatory framework, Switzerland is a third-country regime. For Switzerland to continue to enjoy unrestricted access to the EU’s financial market, it will need to implement similar regulations. The intention of FIDLEG is to harmonize with the EU and possibly to introduce a code of conduct. Independent of Swiss regulation, there is already today, as foreseen within the revised Lugano Convention¹, an agreement that imposes on Swiss financial services providers the obligation to observe the national laws of their retail clients’ country of domicile².

How can experienced risk
professionals help you overcome
this regulatory challenge?

Increasingly complex requirements are at the center of the regulatory compliance obligations and can only be met with sophisticated technical support, e.g. the demanding pre-trade risk analyses of client portfolios. Based on several successful implementations of such pre-trade risk analyses for major Swiss banks, we have gained in-depth knowledge of the MiFID regulations. Additionally, our close cooperation with SIX Financial Services allows us to provide you with central data to ensure compliance in a very efficient and costeffective manner. Furthermore, the swissQuant Group has long-standing and extensive experience in regulatory consulting and auditing gained with several Big Four international players in the auditing and financial rating sector.


¹ In connection with managing clients based in Germany, the German supervisory authority, BaFIN, has contacted several Swiss banks with a questionnaire about the observance of MiFID.
² Example: If a German client is managed by a Swiss bank, the jurisdiction for any legal disputes is the client’s domicile.

Fulfill the stricter FIDLEG/MiFID II
standards and gain efficiency

We offer structured support which aims at fulfilling the new regulatory requirements in a quick and cost-effective manner, while increasing competitiveness. Our subject matter experts’ dedicated knowledge and experience allow them to provide a result-oriented diagnosis of where, how and with whom the necessary regulatory adjustments need to be made.

MIFID 1

– A Gap Analysis is conducted to determine the extent of regulatory compliance
– Documentation of the results and coordination of the necessary adjustments at the process, IT, MIS and governance levels with all parties involved


MIFID 2

– Support in designing and implementing the necessary system adjustments (including client reporting) and processes (user acceptance testing)
– Development of requirement specifications, system specifications, user manuals
– Interface implementation of proprietary or third-party software, adjustment and recalibration, testing, employee training and training documentation


MIFID 3

– Production of meaningful performance mass and corresponding reports to support the management and monitoring of compliance
– Fact-based and competent communication with the regulator
– Individualized and bespoke client solutions

Fulfilment of the regulatory requirements:

  • 1. Conformance with regulations regarding transparency for investors

  • 2. Assessment of financial instruments from plain vanilla to highly complex instruments

  • 3. Support of the reclassification of all clients

  • 4. Conformance with investor protection (suitability and appropriateness)

  • 5. Continuous monitoring of risk classifications

  • 6. Fulfillment of the documentation obligation during the advisory process

  • 7. Cost-efficient implementation of the required MIS adjustments

Our expert advice secures MiFID II Compliance while strengthening your competitive advantage.

References

swissQuant Group has concluded many successful validations and implementations of pricing and large-scale risk systems. We are one of the largest independent Quant teams in Europe dedicated to delivering lasting client value as demonstrated by the following selected reference projects:
  • Implementation of large-scale portfolio risk systems with hundreds of thousands of portfolios of all asset classes for the world’s leading bank in wealth management.

  • Detailed analysis of a progressive margining system for one of the biggest European stock exchange clearing houses, including MiFID and EMIR compliance provisions.

  • Numerous reviews and support of Basel III implementations for clients ranging from Swiss Cantonal banks to major German and international banks.