Opinion  

Why does the market end up undermining investors' trust?

Phil Lynch

This is a serious issue for an individual bank, but when you consider the implications across an entire industry, the potential for systemic risk looms large.

At the same time, polling all instruments and attributes for changes, then updating the affected documents and reporting even if there is no current demand, creates unnecessary and costly processing and overhead.

Ultimately, no bank wants to be making decisions for their customers on mismatched Priips and Mifid II data. With deadlines just around the corner, financial institutions can ill-afford to continue adopting multiple regulatory solutions from numerous different vendors and relying on internal project teams operating in isolation.

For a loss of confidence in retail investment to be averted, the industry as a whole needs to start talking about how information is exchanged, particularly with key data now flowing both ways between manufacturers and retail networks.

This is surely the only way to ensure the industry has the most up to date information at any point in time in order to start seeing regulation as less of a bureaucratic burden, and more of an opportunity to drive new revenue streams.

Phil Lynch is global head of markets, products and strategy, at SIX Financial Information