MiFID II Knowledge and Competency

A thorough review of the key knowledge and competency requirements.

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A one-day MiFID II course

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Download: Course Outline

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: During this MiFID II course, you will gain a basic knowledge of valuation principles for the type of investment products for which information is provided.

Course Content & Relevant ESMA Mappings

MiFID II Oversight

MiFID II 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 session 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, our specialist is well-placed to support professionals across a range of compliance-related topics, including Redcliffe’s MiFID II course. He is a former Head of Education at HSBC, responsible for regulatory and financial crime compliance training across the UK and Europe. His tenure coincided with a period of heightened regulatory scrutiny, including 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 served in the Insurance Firms Division at the Financial Conduct Authority (formerly the FSA), where he was the divisional specialist for the rules and outcomes set out in the Training & Competence handbook. His regulatory insight informs the development of high-quality programmes, including MiFID II courses.

The HSBC role, along with five years at Barclays in their Private Clients and Wealth functions, has seen this specialist 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. He has delivered content across private equity firms, investment houses, banks and wealth managers and regularly delivers core programmes for TISA and the Investment Association.

This regulatory expert is a former member of the Investment Management Association’s Training & Education Committee and was the recipient of the Thomson Reuters award for “Most Effective Compliance Training at a Regulated Firm” in 2010. He brings this experience to the design and delivery of high-quality regulatory programmes, including MiFID II training.

At Redcliffe Training, our MiFID II course ensures 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 be fully versed in performance indicators.
This training reviews 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.
Gain practical strategies for managing complexity and driving effective change—key themes explored.

MiFID II training courses equip 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, sessions are led by an expert with direct industry experience.

MiFID 2 training is ideal for individuals without an industry qualification who must meet knowledge and competence requirements. Professionals 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 a practical demonstration of the knowledge and competency required by all Information Givers.

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

If your employees engage with clients about your products and services without providing formal advice, our MiFID II training courses are designed to meet their regulatory learning needs. 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 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 increased supervision until their competence has been demonstrated and evidenced. This course uses and refers to the ESMA mappings throughout.

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

The trainer was great and asked lots of questions to ensure we were engaged and educated as needed to be competent. Information was a useful refresher on certain topics that are not used in my daily role as well as reminders and confirmation of knowledge on daily topics.
This knowledge will help me should I ever have to give clients factual information about our liquid products and will help ensure I don't give out any information that is incorrect or misleading. The trainer's engaging way of delivering the information gave colour to the topics of discussion.

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