Learning objectives
- Identify the aims and objectives of MiFID II
- Appreciate the measures being introduced to improve the governance regime, including product governance, remuneration, HFT, safeguarding client assets, trading and reporting obligations
- Take appropriate action to protect and give value to investors in relation to the provision of information and advice, suitability assessments, inducements, research, etc
- Maintain and keep appropriate records for financial transactions in line with regulatory requirements
Welcome
What is MiFID II?
- Why is it important for you?
Client categorisation
Conflicts of interest
Inducements
- You make the call: What are the rules on the inducements?
Research
- RPA restrictions
Remuneration
Product governance
- What this means for product manufacturers
- What this means for product distributors
- What do you think: FCA intervention
- You make the call: Product governance rules
Suitability & complex products
- Appropriateness
- You make the call: Suitability & appropriateness tests
- Equivalent tests
- The rules on switching
Information disclosure to clients
- Scenario: Eva provides information
Investment advice
- Investment advice
- You make the call: Is it a personal recommendation or not?
Safeguarding of client assets
- You make the call: Is it a breach or not?
Best execution
Trading obligations
Transaction reporting
- Scenario: The rules on transaction reporting
Publication requirements for investment firms
- Publication requirements for liquidity providers
- You make the call: Delivering the best possible result for clients
Commodities and derivatives
High frequency algorithmic trading (HFAT) & direct electronic access
- Systems & controls for HFT & direct electronic access
- You make the call: The rules on HFT & direct electronic access
Market structure - systematic internaliser
Outsourcing
Record keeping
- You make the call: Record keeping rules
Complaints
Summary
Affirmation
Assessment
Economic Sanctions
Violation of sanctions issued by the UN, the US and the EU which place restrictions on payments and other financial transactions can result in fines as well as criminal charges.