Matthew Vincent speaks to IFLR on post-Brexit divergence

Kaizen’s Matthew Vincent spoke to Thomas Helm on the topic of post-Brexit divergence, which is forcing firms with both a UK and an EU presence to operate two separate compliance policies and reporting systems.


Matthew Vincent, managing director at Kaizen, used the niche topic of MiFID II’s RTS 22 as an example of a seemingly small divergence area that may come with a large price and complexity tag.

“The EU’s review text is so unspecific around the conditions for linking specific transactions and identifying aggregated orders that it could mean anything at this stage,” he said. “In any case, this is the first legislative divergence from FCA (Financial Conduct Authority) reporting. The high level of granular detail may make this challenging for firms to implement.”

Kaizen has been helping clients by holding awareness-raising events in which they pinpoint changes on the horizon.

“Horizon-mapping” helps firms locate and assess the known unknowns, such as RTS 22, in an orderly manner, Vincent explained.

Knowing when the changes will take place – or at least when ESMA, in the case of RTS 22, is expected to fill in the blank spaces – is the first step towards compliance.

Read the article in full on IFLR’s website.