Financial Promotion and Appropriateness

Professionals need to have knowledge on financial promotions as well as an understanding on appropriateness, and as such, this workshop is predominantly about financial promotions although it has a brief section on appropriateness to deal with the fact that high risk or complex products sold without advice are subject to questioning and risk warnings on the subject.

The workshop looks at the compliance aspects of all types of adverts from old-fashioned newspaper and poster advertisements to websites and modern digital media, as well as covering the Cyprus Advertising Regulation Organization’s Code.

Training Objectives

By the end of the programme, participants should be able to:

• Apply the rules contained in MiFID 2 and Article 44 of the Delegated Directive to promotions
• Appreciate the role played in advertising by the Cyprus Advertising Regulation Organization’s Code, ordinary law and good taste
• Identify an image advert or non-promotional communication
• Disclose risks involved in investments
• Understand the core systems and controls and risk management needed for financial promotions

Training Outline

Introduction

• Materials covered
• Definition of a promotion
• MiFID Principles
• Article 44 rules on financial promotions
• Examples of the law, good taste, internal procedures and the application of the Advertising Code away from MiFID

MiFID II and Article 44

• Image adverts
• Fair, clear and not misleading
• Disclosure generally and risks
• CFD risk warnings
• Bank deposit risks (for bank staff only)
• Meaning of prominence
• Comparisons, pricing claims and tax
• Past, simulated and future performance

Digital media

• Particular promotional issues with social media
• Websites
• Other internet issues as requested

Governance and Systems

• Governance
• Risk management
• Records
• Product management information

Appropriateness

• When appropriateness testing is required
• Meaning of non-advised and products covered
• Questioning and methods
• Risk warnings and their impact on whether to accept business

Training Style

This programme consists of an interactive presentation of the relevant rules and good practice with questions and comments to and from the participants, interrupted by a large number of practical examples, including views of historic and current promotions.

Who Should Attend

The programme is ideal for:

• Compliance Officers and Staff
• Marketing and Sales Executives and Staff
• Technical specialists involved in product development
• Risk managers
• Lawyers and legal professionals
• People generally interested in financial products