Almost half of UK financial services companies are not on track to comply with European rules to open up investment markets that come into force in November.

And 46 per cent say the regulator is not doing enough to help them meet the Markets in Financial Instruments Directive (Mifid).

The principles-based approach of the Financial Services Authority makes it difficult to understand what is required, say respondents to the survey by software supplier Sungard.

But the changes ushered in by Mifid should be viewed as an opportunity not a chore, says Bob Fuller, chief executive of Equiduct, an organisation created to help firms meet the EU requirements.

‘Too many firms view Mifid as just another compliance issue,’ said Fuller. ‘But it will be the catalyst for major market changes, and those firms understanding that will be the ones able to compete successfully in a borderless pan-European market.’

Mifid is designed to create a single European market for financial services, with a consistent regulatory regime across the region. One of the most significant challenges for financial services firms is meeting the requirement to prove that their procedures ensure customers get the best deal.

Half of the Sungard survey respondents say they will not know how to meet the ‘best execution’ element until the November deadline, up from a third nine months ago – suggesting confusion is increasing.

‘Financial firms are not sure where to spend their money. Why spend millions on something if there isn’t a specific regulation telling you it will make you compliant?’ said Datamonitor analyst Amit Shah.