MiFID II Product Governance Course: Why Focus on This?
- Why does this matter?
- What are the regulations designed to achieve?
- ESMA, FCA & Other Regulatory Directives
- The latest news
- MiFID II requirements in PROD
MiFID II – Manufacturers
- The product life cycle and manufacturers’ responsibilities, and consideration of good practice
- Idea Generation – including a deep dive into the construction of a Target Market and ESMA (The European Securities and Markets Authority) [1] examples
- Design – encompassing Investment Proposition, Costs & Charges, Risk, Stress Testing, Operations, Compliance, Legal & Tax
- Distribution Strategy – what to consider, including an exercise on the risks of different methods of distribution and inducements
- Product Approval & Launch – responsibilities of senior management and the Product Governance Committee
- Marketing & Distribution – relationships with and information provided to distributors
- On-going Product Maintenance – post-launch review, compliance monitoring, significant adaptations, crucial events and management information
- Maturity & Withdrawal – Focus on Treating Customers Fairly
MiFID II Case Study 1 – New Product Launch
MiFID II – Distributors
- The pre and post-sale responsibilities of distributors, including consideration of good practice
- Obtaining sufficient information – from manufacturers inside and outside of the EEA
- Distribution strategy – Target Market Assessment, what happens if the distributor doesn’t agree with the manufacturer?
- Post-sale reviews – what to consider, who should conduct the review and who should read and act upon the results
- Reporting – information to manufacturers and distribution chains
- Management Information – what should be included and who should receive and who should act on it?
MiFID II Case Study 2 – MiFID II Portfolio Management
Product Governance Framework
- What elements should be included in your product governance framework?
- Structure of the Product Governance Committee – responsibilities, who should attend, their knowledge and experience, key areas of focus, the information it should receive, reporting and escalation
- Product Governance “best practice” checklist
- How should this work in practice?
- Impact on Manufacturers, Distributors or both
MiFID Product Governance Course: ESG
- What is ESG?
- What impact does it have on product governance?
- The general rules
- ESG Amendments – mandatory from November 2022
- ESMA Final Report Guidelines
- ESG template
- Dealing with ESG in practice