John Cant
Accolade: Blog group founder

John Cant

Managing Director at MPI Europe Ltd
Message Message me Posts: 41 Comments: 21
Bio I lead MPI Europe a niche financial sector consulting firm focussing on regulatory driven, risk, technology and operational change Career History A long term financial sector inmate, I have had a varied career ranging from building equity technology solutions for JP Morgan, to developing derivative and risk management software products, before then embarking on my main consulting career as a KPMG partner and then forming my own consulting fir

Blogs

Innovation in Financial Services

Imagine a miniature financial crime fighter in every router

16 Jun 2016

It is well known that financial criminals are adept at finding the weakest link in a bank’s, or the banking systems, defence to attack. They can often do this by avoiding the immediate defensive measures in applications and getting transactions into the banks payments systems, even on a trusted network such as Swift. Once on the network, criminals...

MiFID

Will MiFID II bring Evolution or Revolution to investment research?

08 Jun 2016

There has been significant discussion, and indeed some confusion, around the impact of MiFID II on investment research. Some investment firms, including M&G recently, have made announcements that they will no longer charge the cost of broker’s research to the investor’s funds, but will pay them out of their own resources – a potentially revolu...

Trends in Financial Services

Fraud ain’t what it used to be

18 May 2016

Between the time this blog was published and you reading it, new fraud schemes will have emerged. Indeed, with the ever increasing number of, and methods for, payment transactions and the new supporting technologies, not least mobile and internet banking, the new opportunities for fraudsters are increasing. Banks are realising that the trends in p...

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Trends in Financial Services

You’ve been quiet recently - are you dormant, deceased or just gone away?

09 May 2016

My previous post https://www.finextra.com/blogposting/12517/beware-the-financial-crime-bite-of-the-back-book talked about the dangers lurking in a firm’s back book of existing customers and how to find and address them. A key part of this exercise is to understand the data that describes a customer, and hence understand whether they are a risk, a...

John is Commenting on

Will MiFID II bring Evolution or Revolution to investment research?

  Helpfully the FCA’s recent announcement on MiFID II ( https://www.fca.org.uk/sites/default/files/cp16-29.pdf ), reconfirms the analysis above. It clearly agrees that even the Evolution option will require process and system changes as stated above. In their latest paper they point out “Operationally, this will require changes to current Commission Sharing Agreement (CSA) accounts” and then indicate a number of conditions that need to be satisfied. They also confirm that the “hard dollar” Revolution option is consistent with MiFID II e.g. “direct payments by the investment firm out of its own resources”. However, it still leaves the choice of where on the spectrum a firm wants to settle and how exactly it wants to satisfy the rules as being a choice for the firm. It also seems to be taking a different view from the AMF, the French regulator, which will further complicate decision making. We are seeing firms starting to be attracted to options which look at budgeting at a strategy rather than client/fund level. As the FCA notes this “may allow firms to set a budget at a desk-level or strategy level” but only if “the individual and collective portfolios subject to the budget share sufficiently similar research needs.” This may make budgeting easier but will still require a far more robust evaluation of research needs and how they are satisfied than exists in a good number of firms. Whatever the potential approach, it is time to start implementation.