The Association of German Banks has launched a scathing attack on MiFID II as being too costly, undermining trust and involving requirements that increase work for no obvious benefit.
In a statement from the group’s general manager, Michael Kemmer, the group said bank customers face an ‘information overload’ once MiFID II requirements kick in at the start of 2018.
‘Banking regulation has lost sight of the big picture,’ said Kemmer. ‘A large number of good individual measures don’t necessarily make a coherent whole. At over 20,000 pages, the sheer size of MiFID II shows that it is mired in detail and goes far too far.’
In addition to the detail, Kemmer said the estimated cost of implementation for German banks currently sits at €1 billion.
‘That’s without the running costs. The banks could put that money to good use elsewhere,’ Kemmer added. ‘There are already signs that banks will no longer be able to offer all their customers every service and every financial product.’
Having also voiced concern about the scope of the regulation, Kemmer and the Frankfurt-based organisation said measures such as mandatory telephone recordings were ‘impossible to understand’.
‘Such broad requirements to record telephone conversations help nobody and certainly aren’t in the customer’s interest. They merely undermine the trust between customer and bank. This aspect of MiFID II needs to be reviewed and adjusted.’
The Association of German Banks represents more than 200 private commercial banks and 11 member associations across the German market.