European Institute of Management and Finance | Product Governance and Investor Protection Updates
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Product Governance and Investor Protection Updates

Product Governance and Investor Protection Updates

 

According to the ESMA, the financial crisis has shown that there are instances where the application of conduct of business rules in the context of the provision of investment services to individual clients may be insufficient to ensure that firms fulfil their duty of acting in the best interests of their clients; therefore, MiFID II as well as the MiFID II Delegated Directive introduced product governance obligations for manufacturers and distributors with the objective of enhancing the level of protection of investors by way of requiring firms to take responsibility, from the beginning, that products and the related services are offered in the interest of clients. The objective of the product governance requirements is to ensure that firms, which manufacture and distribute financial instruments and structured deposits act in the clients’ best interests during all the stages of the life-cycle of products or services.

 

MiFID II and PRIIPs include numerous provision on investor protection especially as far as retail investors are concerned. Emphasis is given mainly to the information to be provided to the client, to transparency requirements, to the efficient determination of the target market and the distribution of the investment products accordingly, to the suitability and appropriateness assessment of clients and to the best execution when executing client orders. For the purpose of product governance requirements, investment firms that create, develop, issue and/or design financial instruments, including when advising corporate issuers on the launch of new financial instruments, should be considered as manufacturers while investment firms that offer or sell financial instrument and services to clients should be considered distributors.

 

 

The objective of this seminar is:

 

  • to present the various issues concerning the target market
  • to provide guidance concerning compliance with the new requirements
  • to present the investor protection rules according to MiFID II and PRIIPs, the relevant level 2 measures and the relevant guidelines f ESMA
  • to present the new requirements on product governance
  • to present the content of the KID according to PRIIPs

 

 

Seminar content

 

  • Scope of application
  • Enforcement
  • Categorisation of clients
  • Information to be provided to clients
  • Best execution
  • Manufacturing and distributing financial instruments
  • Product monitoring and intervention
  • Key Information Document

 

 

Who should attend

 

  • Compliance officers
  • Legal advisors
  • Any person who provides investment services