The Financial Conduct Authority (FCA) received 1,335 notifications of inaccurate reporting on the transaction under the Markets in Financial Instruments Directive (Mifid II) in 2018. The figures have been published by regulatory consultancy Bovill, and only covered those companies that were aware that they breached the new reporting requirements and thus reported themselves to the regulator. There are therefore likely to be “many thousands” more inaccurate reports.
According to David Batten, managing consultant at Bovill, if reporting errors are that common among firms that are MiFID II-ready, “companies that haven’t detected any should be wary.” He added, that the FCA is not going to punish companies for reporting errors, however, those that cannot identify or report mistakes properly would face penalties.
The full article is available on FT Adviser.