European Institute of Management and Finance | Promoting Financial Products, Appropriateness and Non-Advised Transactions
62883
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Promoting Financial Products, Appropriateness and Non-Advised Transactions

Promoting Financial Products, Appropriateness and Non-Advised Transactions

 

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. That directive and its subordinate legislation create a common financial promotions regime for Europe. This in turn has created a common industry involved in trying to reconcile compliance rules designed for a static advertising world with the demands of modern media.

 

Firms selling complex products without recommending them almost invariably must face up to a need to carry out appropriateness testing. Knowing when and how to do this and then appreciating what should be done with the results is a key task for non-advisory firms.

 

 

Training Objectives

 

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

 

 

Training Outline

 

Introduction

  • Rules, principles and ideas applicable to financial promotions
  • Promotions beyond MiFID – Codes of Advertising Practice, law, good taste
  • What is a promotion and the extent to which it matters?
  • The regulatory framework for promotions: MiFID Org Reg, article 44
  • Context of financial promotions as part of product development and governance
  • The effect of rule breaches

 

The Rulebook MiFID and MiFID Org, article 44

  • What do the rules apply to?
  • Non-promotional communications and image Adverts
  • Clear, fair and not misleading in the conduct of business sourcebooks
  • Prominence & font-size rule
  • ESMA & CYSEC measures on contracts for differences
  • Rule against unfair comparisons
  • Rules and guidance on specified expressions
  • Tax
  • Making promotions identifiable as such
  • Giving the name of the firm
  • Naming the regulator and compensation scheme
  • Past, simulated and future performance

 

Mainstream Issues in Digital Media and Promotions

  • Social media issues
  • Pay-per-click & sponsored links
  • Websites

 

Systems and Controls

  • Risk Management
  • Approval of promotions for others
  • The Competent Employee Rule
  • The Compliance Function
  • Record-keeping

 

Appropriateness

  • When required
  • How required
  • What to do with negative results – risk warnings and MI

 

 

Training Style

 

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.

 

 

CPD Recognition

 

This programme may be approved for up to 5 CPD units in Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

 

Professionals requiring CPD units to meet the education requirements for CySEC licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Financial Regulation, are advised to consider training subjects in categories that indicate CPD training in Financial Regulation.

 

 

Who should attend

 

The programme is ideal for:

  • Compliance officers and managers
  • Marketing people
  • Risk managers
  • Product technicians