Regulations comparing with Aptus.AI: the MiFID II “Quick fix” use case

MiFID’s partial modifications management in a few click

The management of financial regulations updates is a really complex activity. Those who work in the banking compliance sector are perfectly aware of the amount of the changes that regulators constantly make on laws. A quite recent example can be represented by the so-called “Quick fixdirective, issued as partial modification of the MiFID II in February 2021. But let’s step back for a moment. MiFID is an acronym that identifies the “Markets in financial instruments directive”, that is the 2004/39/EC directive, which regulates the European financial markets. This regulation has been updated in 2018, with the enforcement of the so-called “MiFID II” (2014/65/EU), issued by the European Union to reinforce its financial system. Following the economic disruption caused by the COVID-19 pandemic, the European Commission has furthermore approved the 2021/338 directive – the Quick fix – aiming to reduce the bureaucracy and to adjust the MiFID content in respect to the situation created by the pandemic, concerning information obligations, product governance and position limits, along with the 2013/36/EU (CRD IV) and (EU) 2019/878 (CRD V) directives. This partial regulatory update obliged financial institutions to compare the different versions of the MiFID to evaluate its impact on their business. But how to do that accurately and in reasonable times? Well Aptus.AI’s RegTech platform answers this need, exploiting b to offer automated and real-time banking regulations versioning and comparing.

Real-time versioning and comparing? Aptus.AI’s machine readable regulations makes it possible

How can financial regulatory changes be tracked in respect to the previous version of a law? And how to identify the ones that impact the business? Our platform can do that by exploiting its AI engines that create an electronic and machine readable version of banking regulations. Leveraging that, regulatory updates collection and comparison analysis operations are automated, allowing compliance professionals to focus only on the decision-making management concerning regulatory changes. The Law Versioning and Comparing feature enables users to interactively consult regulatory updates, even partial – just like the MiFID II Quick fix -, in order to compare different versions of the same regulation. The regulations comparison also includes the Law Smart Navigation function, which offers an interactive analysis of the specific parts that have changed with the regulatory update, visualizing both the new text and a link to see the previous version of the law. That’s not all. The platform also includes the custom email Notification System feature, which allows users to be constantly updated about their regulations of interest. The email message already recaps the most relevant general information about the regulatory modification and offers an overview of the impacted areas, but mostly the links to immediately visualize and navigate the regulation on the platform as described above.

Faster and more precise impact analyses, exploiting Aptus.AI’s automatic obligations extraction

At this point, the impact analysis concerning the regulatory update of interest – like, for instance, the MiFID II Quick fix – can be prepared by identifying the related obligations and cross-reference them with the impacted internal policies and processes. Which is still a complex operation… that the platform will do anyway! Yes, because the platform also offers the automatic Regulatory Obligations Extraction feature. Providing the regulatory obligations extraction, Aptus.AI’s solution carries out also the last step of the financial compliance operations workflow, allowing humans to focus on the activity in which they are essential and that no Machine Learning system will ever do for them: make the right decisions.