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. 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.
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.
This course looks at promotions under MiFID of all kinds, not just from the financial services compliance viewpoint but also advertising standards and good marketing. Adam always brings to courses examples of good, bad and sometimes dangerous promotions. He also likes looking at websites of participants’ competitors and various digital media channels to see what works and what does not. The course will also cover the process of carrying out product governance, the structures that businesses need to have in place to meet the regulators’ 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
- 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
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 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 10 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:
- Board directors and chief executives
- Compliance officers and managers
- Marketing people
- Risk managers
- Product technicians