Promoting Financial Products, Appropriateness and Non-Advised Transactions
The EIMF Live Online Learning Experience
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.
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.
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
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
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
Systems and Controls
Approval of promotions for others
The Competent Employee Rule
The Compliance Function
What to do with negative results – risk warnings and MI
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 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