MiFID II: Seven key implications for asset and wealth managers
5 Jun 15
EY’s seven ways MiFID II will affect asset and wealth managers
1) Product manufacturer and distribution obligations
Under MiFID II,firms, who create, develop, issue and/or design investment products must:
- Identify potential conflicts in relation to the product;
- Ensure Compliance function reviews and monitor requirements in relation to the product;
- Identify target markets at a “sufficiently granular” level;
- Perform scenario analysis;
- Consider the appropriateness of charging structures; and
- Determine the complexity of the product;
Additionally, distributors of products must:
- Obtain all product information from the manufacturer;
- Provide suitability statements to investors ahead of investment;
- Have suitable governance arrangements around which products to offer; and
- Provide manufacturers with sales information for the purpose of lifecycle reviews.
