Dion’s MiFID II solution will help firms gain compliance in the areas of:
The directive demands that records be kept of all services, activities, order processing and transactions undertaken. Recording, maintaining and recalling of telephone conversations and electronic communication.
Significant emphasis on the need for advisers to understand and document a client’s suitability and risk tolerance.
MiFID II requires providers of complex investment products to carry out ‘appropriateness tests’ to determine whether or not the customer can make an informed decision about the product.
MiFID II introduces extensive product governance obligations for both manufacturers and distributors of investment products. Firms will need to put a strong product governance and product approval process in place and will have to perform ongoing reviews of those products.
Conflicts of interest
Investment firms shall have in place systems, controls and procedures to identify and manage the conflicts that arise in relation to pricing, placing, advice, distribution, record keeping and oversight.
The policy is to make sure there are no inducements that could cause a conflict of interest and for any 3rd party payments or non-monetary inducements received to be disclosed.
Costs and charges transparency
Cost of service to be provided, and the costs of the product recommended to be included. This breakdown should include distribution and management fees, payments to and from third parties, including broker commissions and platform fees.
Obligations for portfolio management to include a fair and balanced review of the activities undertaken and of the performance of the portfolio during the relevant period, for both retail and professional clients.
Transaction reporting to regulators, every single transaction following execution. Firms must be enabled to prove and demonstrate to the regulators oversight of all functions.
Reference data and identifiers for transaction reporting. Sourcing of transaction cost analysis if distributors of funds.
Firms must be enabled to report on an ad-hoc basis directly to the management and regulatory body whenever it has detected a significant risk of failure to comply with its obligations under MiFID II.
Our domain expertise and technology solutions will support your business to be ready for MiFID II challenges and demands. Our strategy and vision is aligned to your goal to achieving regulatory compliances, competitive advantage, managing costs and growth.