EIMF subject-matter experts deliver engaging and interactive courses across a broad spectrum of areas, that can be enjoyed in the comfort of your own chosen environment. Read more
Everyone wants to know how to put their product or service out in front of future customers in a multi-channel world. It is also a world where the European Securities and Markets Authority and CySEC have already intervened in a significant way to dictate the forms of marketing allowed in the Contracts for Differences market. Marketing regulation is not confined to financial services regulators. The Cyprus Advertising Regulatory Organization (CARO) has its own rules. All of these regimes are modelled around the “fair, clear and not misleading” found in MiFID 2.
Product governance is probably the most important new subject area for financial services professionals in the EU. It finally entered the regulatory vocabulary at European level with the implementation of MiFID 2, closely followed by that of the Insurance Distribution Directive’s own provisions on the subject. ESMA has already intervened in the marketing and promotion to retail customers of binary options and contracts for differences and Cyprus has responded to the ending of the ESMA measures by implementing its own intervention in September 2019.
Much of the focus of MiFID 2, the Insurance Distribution Directive and other modern regulation is on the fair treatment of customers. The handling of complaints marks out financial institutions as being concerned about their customers and keen to improve their own standards generally. MiFID 2 was the first general EU financial services directive to take the subject seriously and lay down, through its MiFID Org Regulations, some Europe-wide complaint rules. Now, the ESMA/EBA guidelines apply to Cyprus complaint handling well beyond banking and the EIOPA guidelines deal with insurance cases.
The trainer, Adam Samuel is a UK-based complaints and compliance expert who has handled complaints for firms, consumers and briefly as an Ombudsman. He is the author of the only book on UK financial services complaint handling now in its second edition. He brings to our courses his experience and knowledge of the UK and the subject-area generally as well as an unquenchable enthusiasm for learning how the rest of Europe and in particular Cyprus handles things. He brings to every course a string of practical examples and welcomes people bringing along their case studies and examples.
- By the end of the programme, participants will be able to:
- Understand the key MiFID and MiFID-related provisions on financial promotions and appropriateness testing
- Read promotions and spot their strengths and weaknesses
- Apply the concepts of standalone compliance and regulatory media neutrality
- Apply “fair, clear and not misleading” to a variety of different media
- Identify the types of promotion that carry the lowest compliance risk
- Understand the basics of risk management in relation to promotions and digital media
- Know when they have to carry out appropriateness testing
- Understand the appropriateness testing conditions required
- Know what to do with the results of the appropriateness testing
- Understand the key MiFID and MiFID-related provisions on product governance
- Appreciate the goals of product governance and the risks of not achieving them
- Identify strengths and weaknesses in product governance structures
- Identify the positive and negative target markets of investment products and services
- Piece together the key elements in designing a product or service
- Determine the types of distribution that would not be suitable for certain types of products
- Gather key management information about the success or otherwise of the governance process
- Apply treating customers fairly notions to their business
- Apply the MiFID Org Regulation provisions to complaints
- Build and implement the basics of a complaints procedure and policy
- Understand the complaints process from advance disclosure of the process to the closure of the case
- Appreciate some of the root cause analysis techniques and their weaknesses
- Reach fair results in relation to their products and services and complaints about them
- Deal with a case at the Financial Ombudsman
Financial promotions – digital to billboards
- MiFID and CARO code
- What is a promotion?
- Image advertising and other promotional activity outside MiFID
- Fair, clear and not misleading
- Risks and their description
- CYSEC CfD compulsory warnings
- Unfair comparisons
- Past, future and simulated performance
- Digital media elements – social media, pay-per-click and websites
- What do you test?
- How do you test?
- How do you assess the results?
- Risk warnings and their impact on whether you accept the client
Product governance under MiFID
- Defining manufacturer and distributor
- National product intervention powers
- The product governance arrangements
- The “product governance committee”
- Role of compliance and the Board
- Core principles – conflicts of interest, join-ventures
- Target market – manufacturer’s and distributor’s roles
- Product design
- Product testing
- Selecting distribution
- Providing information to distributors – distributors obtaining it
- Monitoring distribution
- Reviews and ongoing monitoring
The idea of TCF
Setting up expectations
- Attracting customers (promotions rules introduced)
- Describing the firm, product and service
Meeting expectations and a product or service of reasonable quality
- Advice, fact-finding, suitability
- Best execution
- Introduction to product governance
- Elements of the procedure and policy
- The complaints management function
- Advance disclosure of how to complain
- Identification, recording and acknowledging
- Assessment and final response
- Financial Ombudsman
- Root cause analysis
The training style is interactive involving a combination of discussions and presentation, group work and case studies (taken from real-live examples). Participants are encouraged to share their opinions from their different perspectives.
This programme may be approved for up to 15 CPD units in Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.
Who should attend
The programme is ideal for:
- Complaint handlers
- Customer relations and customer service staff
- Risk managers
- Board directors and chief executives
- Compliance officers and managers
- Marketing people
- Product technicians