MiFID II Knowledge and Competency

With an increased focus on MiFID II requirements, firms with staff providing advice and information regarding financial instruments, investment services or ancillary services to clients, must demonstrate minimum standards of knowledge and competence to fulfil their regulatory obligations. MiFID II training at Redcliffe covers everything needed to meet these requirements.

Firms must ensure team members have the necessary knowledge and competence to:

A: Understand key characteristics, risks and features of investment products available through the firm. This includes any general tax implications and costs to be incurred by the client in the context of transactions. Particular care should be taken when giving information concerning products characterised by higher levels of complexity.

B: Understand the total amount of costs and charges to be incurred by the client in the context of transactions in an investment product, investment services or ancillary services.

C: Understand the characteristics and scope of investment services or ancillary services.

D: Understand how financial markets function and how they affect the value and pricing of investment products on which they provide information to clients.

E: MiFID II training aids understanding of economic figure impacts and national/regional/global events on markets and the value of investment products on which they provide information.

F: Understand the difference between past and future performance scenarios alongside the limits of predictive forecasting.

G: Determine issues relating to market abuse and anti-money laundering.

H: Assess data relevant to investment products on which they provide information to clients such as Key Investor Information Documents, prospectuses, financial statements, or financial data.

I: Understand specific market structures for the investment products on which they provide information to clients and, where relevant, their trading venues or the existence of any secondary markets.

J: Gain a basic knowledge of valuation principles for the type of investment products about which information is provided with this MiFid II course.

Course content & Relevant ESMA Mappings

MiFID II Oversight

Training looks at where we are post-MiFid II and covers the Quick Fix update. We delve into core components, the ESMA competency requirements and why they matter.

Financial Markets & Products

Delegates cover the following key areas, applicable to A, D, E & I above:

• The structure of financial markets
• Buyers and sellers
• Primary and secondary markets
• Key economic drivers of prices and value (macros and micro)
• Equities vs Debt
• Key features
• Risk profiles
• Tax implications
• Product pricing
• The Foreign Exchange Market
• Risk profiles
• Tax implications
• Product pricing
• Derivatives
• The role of derivatives in financial markets
• Pricing of forwards
• Futures, swaps and options
• Hedging vs investing
• Complex financial products
• Structured products

The Investment Process

This MiFID II training course investigates the following aspects, applicable to B, C, F, H & J as found above:

• The Fund Industry
• The structure and function of an Asset Manager
• Active vs passive management
• Ancillary services (fund administration, custody)
• The Investment Universe
• Governance
• Funds/instruments offered
• Client suitability
• Review and realignment
• Performance and Valuation
• Past vs future
• Simulated past
• Forecasting
• Appropriate warnings/client categorisations
• Assets under management
• Net asset value (or NAV)
• Client Documentation
• Key investor information documents
• Appropriate disclosure; what and when
• Prospectuses
• Financial statements
• Cost and Charges
• Management fees
• Performance fees
• Client transparency; research costs
• Tax implications
• Wrappers

Market Abuse

MiFID II training concludes with the following, applicable to G, found above:

• Definition of market abuse and regulation recap
• Key typologies
• Commonly adopted controls
• Criminal Finance Bill
• 4th and 5th Money Laundering Directives

With over 20 years of training experience dedicated to financial services, this specialist is well-placed to support professionals across a range of compliance-related topics including our MiFID II course. He is a former Head of Education for HSBC where he covered the UK and Europe and was responsible for regulatory and financial crime-related compliance learning. His time at HSBC was during intense scrutiny from regulators and government functions during the bank’s Deferred Prosecution Agreement.

Other roles include leading the Monitoring and Testing programme for a UK Wealth Manager, and Senior Vice President responsible for Global Risk & Compliance training at a US-based bank. Our expert has also worked in the Insurance Firms division at the Financial Conduct Authority (in the FSA days) where he was the divisional expert for the rules and outcomes required under the Training & Competence handbook.

The HSBC role, along with five years at Barclays in their Private Clients and Wealth functions, has seen the trainer work with retail, commercial, wholesale and private banking channels. Since leaving HSBC, he has worked with compliance, HR and operational teams of firms to enhance their regulatory understanding. In addition, our MiFID II course expert has delivered content across private equity firms, investment houses, banks and wealth managers. He regularly delivers core programmes for TISA and the Investment Association.

This trainer is a former member of the Investment Management Association Training & Education Committee and won the Thomson Reuters award for “Most Effective Compliance Training at a Regulated Firm” in 2010.

• MiFID II courses at Redcliffe Training ensure delegates leave with the knowledge and understanding of financial markets' key workings, products and risk characteristics
• Participants will apply the impact of macroeconomic events on the value of financial products
• By the end of this session, you will understand performance indicators
• We will review the current regulatory landscape to comprehend the key issues relating to market abuse and AML
• Delegates will be able to communicate with intention and authenticity
• Courses analyse how to manage complexity and change

• Our MiFID II training equips participants with the necessary knowledge and competency required in a post-MiFID II world (ESMA guidelines)
• Participants are allowed to gap-fill against existing knowledge through the use of practical examples and applied content
• Training provides the perfect refresher across the core financial market and compliance-related topics
• Sessions are ideal for any individuals who don’t currently hold an industry qualification
• Alongside a wealth of subject knowledge, our MiFID II training courses are led by an expert with direct industry experience

This MiFID II training course is ideal for those not holding an industry qualification covering the necessary knowledge and competence requirements but are required to do so. Individuals who would like an effective refresher on the key knowledge areas expected under MiFID II will also benefit from this session.

Using the ESMA mappings this course serves as both a refresher across key financial topics and also a practical demonstration of the knowledge and competency required by all Information Givers.

If required, an end assessment can be organised for MiFID II course participants to show the K&C has transferred to understanding. The assessment adds rigour to your embedding of the regulatory requirements.

If you have employees, who are not giving ‘advice’, but have client contact regarding your products and services, our MiFID II course is for you. Collectively these employees are known as Information Givers and will include many of your support employees such as desk assistants, client support teams, research, sales, legal and even brokers/dealers in some organisations.

ESMA (European Securities & Markets Authority) has outlined Knowledge & Competence expectations that firms need to evidence competency against. Some of the employees may already hold suitable industry qualifications, however, what about everyone else? Firms are expected to annually assess their employees against the ESMA criteria. Anyone not assessed will need to be under increased supervision until their competence has been demonstrated and evidenced. This course uses and refers to the ESMA mappings throughout

One-day MiFID II training at Redcliffe is led by an expert with dedicated industry experience.