MIFID II investor protection
What's the challenge?
Under MiFID II, investor protection is key. Financial institutions must act in the best interest of their client, and it is therefore paramount for firms to have a deep understanding of who is distributing the financial products they manufacture.
This underlines the responsibilities of buy-side and sell-side firms.
MiFID II requires that firms:
- Improve attention paid to product design
- Provide complete and clear information about investments
- Provide a suitability assessment of products recommended to clients
- Protect investor assets
- Deal with investor complaints in a fair and efficient manner.
This means that clients would require product suitability classifications to differentiate between complex and non-complex products and MiFID II asset classification data to comply with product design and suitability assessment.
How we help
How can Refinitiv help?
Where bundled products are sold to investors, we help you to ensure clear transparency as to how these are made up, that they are appropriate, and whether investors could obtain better prices for individual products if they were sold separately. Itemize and declare costs, fees and commissions, and any non-monetary benefits paid to intermediaries easily.
Expertise to support your requirements
You can further meet requirements by declaring if the investment advice that you give is not independent, and whether it is based on a sufficiently wide view of
the market or a restricted one; and acknowledge if products are developed by entities that are related to you in any way.
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