Fifth Of UK Fund Managers Make Reporting Errors to FCA

According to data obtained under an FOI request by Duff & Phelps, approximately one-fifth of all UK fund managers are guilty of making errors in their transaction reporting to the Financial Conduct Authority (FCA). 

These errors have been caused by a failure to meet the highly complex and detailed transaction reporting requirements enforced by MiFID II. 

In January 2018, MiFID II was implemented in an attempt to improve the transparency of European markets by forcing investment managers to provide reports of all transactions. As a result of this, most firms have had to use third-party reporting systems – such as eflow’s transaction reporting solution – to meet the demands put forward in MiFID II.

These demands, however, have proved difficult to meet. According to the data collected by Duff & Phelps, at least 546 firms have admitted to making errors in their transaction reporting since MiFID II came into effect. These amounts to roughly 15% of the 3,274 investment firms currently operating in the UK. 

In addition to these offending firms, the FCA has contacted 223 more firms regarding potential issues with their reporting data. This means that approximately 20% of all UK fund managers have discussed erroneous reporting with the FCA.

Nick Bayley, a former FCA regulator, has claimed that we are still currently in a ‘honeymoon period of education and encouragement in relation to transaction reporting’.

Both ESMA and National Competent Authorities (NCAs) across Europe have been somewhat lenient with low-quality reporting since MiFID II’s implementation. However, regulatory bodies are becoming increasingly strict as this ‘honeymoon period’ draws to a close. 

Quality Control: Is Sampling Effective in Transaction Reporting?

Quality Control: Is Sampling Effective in Transaction Reporting?Ben Parker, CEO and FounderlinkedintwitterFinancial firms face a complex web of regulatory requirements – with transaction reporting undoubtedly taking the crown as one of the most challenging. Firms need...

Regulatory Responses to Algorithmic Trading

Recent events have pushed algorithmic trading to the front of the financial regulatory agenda. We consider what this might mean for automated trading.

David vs. Goliath or Market Abuse? The Regulatory Challenge Posed by GameStop

David vs. Goliath or Market Abuse? - The Regulatory Challenge Posed by GameStopBen Parker, CEO and FounderlinkedintwitterA New Regulatory Challenge Global financial regulators are eyeing up new controls on market manipulation following the widely reported GameStop...

UK, MAR and Market Abuse After Brexit – The New Regime Explained

The UK, MAR and Market Abuse After Brexit - The New Regime ExplainedDouglas Moffat, New Business ExecutivelinkedintwitterMAR and Market Abuse After Brexit Market abuse is a serious concern for financial regulators. It’s why the European Union sought to further codify...

Technology, Compliance & COVID: The 2021 Thomson Reuters Regulatory Report

Technology, Compliance & COVID 19: Unwrapping Thompson Reuters’ 2021 Report on FinTech, RegTech and the Role of Compliance Ben Parker, Director and Founder linkedintwitterAn increased reliance on technology, continued investment in compliance, and predictably...

Get In Touch

[contact-form-7 id="26302" title="AMP Form 2"]
MENU