European Institute of Management and Finance | Best Execution – Meeting Regulator Requirements
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Best Execution – Meeting Regulator Requirements

Best Execution – Meeting Regulator Requirements

Investment firms are obliged to offer best execution when executing orders on behalf of a client this principle applies to many derivative products including Contracts for Difference (CFDs) and Spreadbetting.

 

Best execution is the obligation when acting on behalf of a client, to take all sufficient steps to obtain the best possible result for the execution of the client orders, having due regard to the wider market in any relevant instrument. The execution process has to be reflected in an execution policy, which must specify the execution venues, and, where derivatives are concerned, must address and distinguish between Exchange Traded products and Over-The-Counter (OTC) products.

 

Best Execution as part of the Markets in Financial Instruments Directive Recast (MiFID II) aims to strengthen investor protection by making markets more efficient and transparent. The first set of reporting expected to be produced by firms is April 2018.

Objectives

Session I:      The Overarching Best Execution Principles

The Best Execution’s  overarching requirements are for firms must take “sufficient” steps to obtain, when executing client orders or placing orders with other entities for execution, to get the best possible result for its clients. The following session examines the MiFID II amendments to the Best Execution regime, including:

  • Clarify key regulatory principles that firms should review their MiFID II framework against including governance; management oversight; roles & responsibilities; and process.
  • State the practical considerations for investor protection including to take all “sufficient” steps to achieve the best possible results for clients.
  • Explore what constitutes “Best Execution” in the context of scope; policy; disclosure and monitoring.

 

Session II:     Best Execution Challenges

MiFID II builds upon the existing requirements in MiFID I in a number of ways including requiring firms to disclose the top five execution venues used.  The following session examines regulatory challenges for monitoring and evidencing best execution within firms and the impact on the market including:

  • State the new requirements for investment firms and trading venues.
  • Presenting a model framework which promotes an appropriate approach to addressing conduct risk.
  • Demonstrate that firms have complied with their execution policy and being able to demonstrate compliance to national competent authorities.

 

Session III:   Best Execution Governance

MiFID II introduces new requirements for oversight and controls that are both understood and implemented. A firm’s governance arrangements must be robust and ensure management have a full understanding of their responsibilities. This session examines the regulatory requirements including:

  • Demonstrate practical examples from Financial Conduct Authority (FCA) enforcement and case studies.
  • Explore how firms manage outsourcing risk and due diligence with third parties.
  • Explain a framework to practically manage regulatory change within your organization to for meeting regulatory expectation.

 

Workshop Style

 

This workshop is designed to be participative throughout. The agenda will combine key formal presentations, case studies and syndicate discussion sessions. There will be ample opportunity for delegates to benchmark experiences with industry peers and raise issues of most concern to their organisation, either confidentially or in open session.

Who should attend:

Management, compliance and administration professionals whose companies are regulated by CySEC, particularly senior management, legal, compliance, internal audit and those employees at the coalface.

Registration Form

Register Here

In-House Training

If you would like to discuss bringing this or another topic to your organization on an in-house basis please call us at 22274470 or email us at info@eimf.eu.

Instructor: 

Vivienne Bannigan

Vivienne Bannigan is an independent regulatory risk professional with extensive experience in Wholesale Capital Markets in both the public and private banking sector in the UK and global markets. Vivienne advises senior management on regulatory policy changes, facilitating designing business strategy and frameworks to manage the regulatory and operational risk. In 2014 Vivienne had responsibility for facilitating the MiFID II consultation response on behalf of members at the British Banker’s Association (BBA). Vivienne started is passionate about coaching and empowering firms and individuals to be able to manage regulatory risk in a practical manner. Vivienne is a passionate sailor.