CISI unveils MiFID II guide, ahead of January ESMA deadline

The Chartered Institute for Securities & Investments has published a guidebook to help companies prepare for the January 2017 implementation deadline for the new Markets in Financial Instruments Directive II (MiFID II).

The CISI booklet contains European Securities and Markets Authority (ESMA) guidelines covering the way financial services companies and staff are to implement the regulations, as laid out in the directive process and the so-called Level 1 and Level 2 implementation stages.

According to CISI, the booklet details the regulatory requirements in such areas as qualifications, continuous professional development and business ethics, which have been a focus of ESMA, as it seeks to raise professional standards in the financial services industry, particularly for those working with consumers rather than other financial professionals.

ESMA published its final report on Guidelines for the assessment of knowledge and competence in December 2015, which are set to affect financial companies’ staff “giving information” or “giving investment advice” anywhere in the EU.

“As required under Article 25(9) of MIFID II, these guidelines specify the criteria for the assessment of the necessary knowledge and competence requirements of investment firms’ staff. These guidelines have been developed to enable firms to fulfil their obligations under Articles 24 and 25 of MIFID II, such as meeting general conduct of business principles, information and reporting to clients, and suitability and appropriateness requirements, through the attainment of appropriate qualifications and appropriate experience by their staff,” ESMA notes.

Kevin Moore, chartered MCSI and CISI global business development director said: “We are absolutely committed to raising professional standards, in terms of knowledge, competencies and behaviour.  This initiative is very much in the interests of consumers all across Europe.”

CISI has previously worked on developing professional competency in the UK context of the Retail Distribution Review, when it worked with both the Financial Conduct Authority and its predecessor the Financial Services Authority.

Brexit

While MIFID regulations are the result of many years of work across the EU, the decision through a referendum for the UK to exit the EU means that there are currently question marks over the continued use of EU standards once the exit becomes a fact.

The Institute is currently developing its further response to the Brexit question and what this means for financial practitioners, a spokesperson confirmed. Additional information on the CISI view about what Brexit means is expected to be released by the organisation in the near future.

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

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