Cysec mifid ii seminar

1. JUAN SIEGFRIED. HEAD OF DEALINGpg. 1
Market of Financial Instrument Directive II (24/1/2018)
1. ProductGovernance
2. InducementsandConflictsof Interest
3. ReportingandTransparency
4. ClientInformation
5. ClientReportsandComplaints
MiFID isthe Markets inFinancial InstrumentsDirective(2004/39/EC)1
.It has beenapplicableacrossthe
EuropeanUnionsince November2007. It isa cornerstone of the EU's regulationof financial markets
seekingtoimprove theircompetitivenessbycreatingasingle marketforinvestmentservicesand
activitiesandtoensure ahighdegree of harmonisedprotectionforinvestorsinfinancial instruments.
MiFID setsout:
 conduct of businessand organisationalrequirementsforinvestmentfirms;
 authorisationrequirementsforregulatedmarkets;
 regulatoryreportingtoavoidmarketabuse;
 trade transparencyobligationforshares;and
 rulesonthe admissionof financial instrumentstotrading.
In 2011 the EuropeanCommisionadoptedalegislativeproposal forthe revisionof MiFIDwhichtookthe
formof a revised Directiveandanewregulation,commonlyreferredtoasMiFID II andMiFIR: these
were adoptedbythe EuropeanParliamenton15 April 2014, and by the Council of the europeanUnion
on 13 May 2014.
1 ESMA-Europa/Policy-Rules/Mifid-ii

2. JUAN SIEGFRIED. HEAD OF DEALINGpg. 2
DifferencesBetweenMiFIDandMiFIDII
1. Extendedscope of productsandactivities
Additional financialinstrumentswillbe broughtintothe scope of MiFIDII, such as:
• Structureddepositsissued orsoldbycreditinstitutions
• Certainpackagedretail investmentproducts(PRIPs)
• All emissionsallowances(suchascarbon)
• The sale of financial instrumentsissuedbythe investmentfirm.
2. Prohibitedpaymentandretentionof inducements(MiFIDarticle 24)
3. Enhancedinvestorprotection
4. Creationof a newexecutionvenue - the OTF
5. Strictergovernance requirementsandmore accountabilityonSeniorManagement
6. Productintervention&strengthenedsupervisionwithstrictersanctions
7. Harmonizedregime forthirdcountryfirms
8. Extendedmarkettransparencyandtransactionreporting
MiFID II_Seminar2018.01.23.pdf

3. JUAN SIEGFRIED. HEAD OF DEALINGpg. 3
Nigel WebbandFedericaTaccognabothmembersof FTI Consulting,anUS businessadvisory firm
specializedinthe fieldsof corporate finance andrestructuring,economicsconsultingforensicand
litigation, were responsibleforthe introductionanddevelopmentof the topic.
1. establishingacommonunderstandingof the regulatoryobligationsin
each of them;
2. highlightingfrequentchallengesandcommonshortfalls;and
3. describingbestpractice approachestocompliance.
Specifiedby ESMA guidelinesandQuestionsandAnswers.
In the areasof:
 Productand ClientGovernance
 InducementsandConflictsof Interest
 BestExecution
 ReportingandTransparency
Doingspecial emphasisin“TargetMarket”and the classificationof the clients,clearlydifferentiatingin3
categories:Eligible Counterparties,ProfessionalandRetail.Aswell asthe crucial informationtobe clear
and fairon investmentadvice,onproductsandcostsand charges. Alwaysbearinginmindactinginthe
BestInterestof the clients.
Some researchandcase studieswere properlyaddress andhow tomanage BestExecutionandConflicts
of Interest.
FinallyendingupwithReportingandTransparencytopics.