NEWS & VIEWS. Global Trustee and Fiduciary Services

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "NEWS & VIEWS. Global Trustee and Fiduciary Services"

Transcription

1 4 Can Asia Fund Passporting Emulate the Success of Europe s UCITS? A look at funds-passporting schemes announced across Asia and their chances of success. 13 Capital Markets Union: What Is It and What Does It Mean for the Market? An overview of the flagship programme at the heart of the EC s growth agenda. 19 SEC s 2015 Exam Focus A summary of the examination priorities published by the OCIE. 22 The New Transaction Reporting Requirements of MiFIR. An overview of the new reporting regime and its impact on asset managers. Global Trustee and Fiduciary Services NEWS & VIEWS Global Trustee and Fiduciary Services News and Views First Edition 2015

2 Global Trustee and Fiduciary Services News and Views First Edition Tougher Rules Than MiFID II: Sweden May Implement a Ban on Third-Party Commissions and Fees for All Types of Investment Advice and Portfolio Management Services In Sweden, the government s MiFID II Review Panel proposes that Sweden should go further than the directive when it comes to the prohibition of accepting or retaining fees or commissions from third parties. While MiFID II limits this prohibition to situations where investment advice or portfolio management services are provided on an independent basis, Sweden may impose tougher rules where all fees and commissions in such situations are prohibited if they could have a negative effect on the interests of non-professional customers. The fees and commissions that may be subject to this prohibition are to be decided by the Swedish Financial Supervisory Authority (SFSA) in regulation yet to be proposed. Is this the right way to go? A booming Swedish retail market for investment products In the last 10 years, Sweden has experienced an expansion of the investment fund and structured products markets. The market for investment funds, introduced in the 1990s, has experienced a substantial growth to date. This is both a consequence of the general increase of household savings in mutual funds and of the reformation of the Swedish pension system, allowing Swedish citizens eligible for pension to opt between different investment funds that have been selected for the public pension savings scheme. The market for structured products has experienced a similar development during last 10 years, where the primary market for structured products has been made accessible for the retail market and where a large number of different structured products have been packaged to suit retail customers. Statistics are evident: a recent study made by the Statistics Sweden showed that the accumulated savings in financial products by Swedish households increased by some SEK1500 billion between 2002 and While wanting to make the most of this business opportunity in the retail market, Swedish small- and mid-sized securities firms and fund managers faced great competition from the four dominating Swedish banks, with substantial capacity to distribute financial products to retail investors through their many local offices across Sweden. This led to a development where other means for distribution were explored, including telemarketing, internet sales and the increased use of smaller securities firms or insurance intermediaries as end-distributors. As for insurance intermediaries, such intermediaries were used to market (arguably outside the scope of regulated investment services) financial instruments directly against end-consumers or to sell endowment insurance solutions linked to financial instruments, including tax-efficient solutions whereby

3 66 Markets and Securities Services Sweden

4 Global Trustee and Fiduciary Services News and Views First Edition endowment insurance is linked to custody accounts where the customer is free to trade over the account. An interesting fact in this context is that the number of insurance intermediaries in Sweden has more than doubled during the last 10 years. The number of fund managers and smallto mid-sized investment firms specialising in structured products has increased. The bulk of investment advice is provided by the producers of financial instruments (such as banks, investment firms and insurance companies) and intermediaries (such as smaller investment firms and insurance intermediaries). In such cases, the intermediary has an economic arrangement with the producer. This has led to a situation where close to all intermediaries are connected to a producer of some kind and where there are close to no independent investment advisers that charge customers directly for investment advice. It has also meant that new intermediaries are entering the market with a view to benefit from the lucrative opportunity to distribute financial instruments to retail customers. However, not all of them necessarily possessed the right competence, knowledge and experience to be able to sell more complex products or to provide investment advice for them. Problems associated with remuneration to distributors Intermediaries are customarily paid by up-front fees, kick-backs or other shared commission arrangements. Such fees and commissions are often built into the price and therefore create difficulties for customers to understand what inducements drive the sales and the sales behaviour. This difficulty is further emphasised in connection with sales of more complex products or combination of products. This has inevitably led to problems. Retail customers have understandably a difficulty in knowing or identifying a difference between investment advice and pure sales. Furthermore, in many cases investment advice has lead to transactions that were not necessarily in customers best interests. These developments led to the SFSA increasing its supervision in this field. The debate in Sweden over the last four years, very much lead by the SFSA and commented on in its annual supervisory reports, has very much been focused on consumer protection. Moreover, the SFSA concluded that inducements in connection with the sale of financial instruments created conflicts of interest where customers interests in getting suitable advice have been set aside by advisers interests to make sales and earn commissions. This has also resulted in sanctions by the SFSA. During the last four years, the SFSA decided in several cases to administratively fine investment firms and insurance intermediaries that did not meet the requirements to act in the best interest of clients or to meet the legal requirements for sound advisory standards. These cases were only the tip of the iceberg. There were many other cases where the SFSA, for different reasons, chose not to intervene by way of sanctions. Another common denominator in these cases is the customer having difficulty understanding what fees, commissions and kick-backs are associated with products. The firm selling the product, furthermore, had failed to provide sufficiently clear information about such fees and commissions. There were also issues relating to insufficient knowledge and experience of the investment advisers. Given the need to review Swedish legislation in relation to the implementation of MiFID II, the government took the opportunity to request that the MiFID II Review Panel come up with regulatory solutions to the problem relating to fees and commissions for financial advisory services. In its work, the Review Panel has taken into account the legal developments in other countries, in particular, it seems, in the UK. Is the UK model suitable for Sweden? In 2012, the UK introduced a requirement that personal advice could only be remunerated by advisory charges and commissions. Remuneration or benefit of any kind from a third party was banned. This regulation was a product of the Retail Distribution Review (RDR), a project that launched in 2007 with a view to enhance consumer protection in the UK retail market. What is interesting when comparing the UK market with the Swedish market is that the UK market is in many ways different. In the UK, there is a much higher share of independent investment advisers, i.e. advisers who provide advice on the basis of a sufficiently broad analysis of available

5 68 Markets and Securities Services Sweden A ban on commissions would probably lead to a reduced availability of investment advice for retail customers, in particular customers with smaller amounts of money to invest. products on the market. It is also a much bigger market, not dominated by four big banks as in Sweden, and where market conditions presumably allow for a bigger variety of business models and actors when it comes to investment advice. The problems for retail investors in the UK market that were addressed by the RDR-project in many ways have similar characteristics as the problems in the Swedish market. However, there are profound differences too. The UK s regulatory recipe for dealing with the problem in the UK may very well be equally effective if applied in Sweden. But the consequences for the Swedish financial industry may be quite different. The reason is simple, but evident: independent investment advisers do not suddenly appear out of thin air. Apart from the UK, the Netherlands has implemented a similar ban on inducements. But the Review Panel s proposal seems more aligned to the UK regulation than the Netherlands. The Swedish Proposal In January 2015, the Swedish MiFID II Review Panel presented its impressive review of regulatory actions required for Sweden to implement the directive. It also provided a proposal on how to deal with problems associated with the Swedish market concerning investment advice and consumers. The Review Panel s proposal was to implement a rule in the Swedish Securities Markets Act, providing that an investment firm (including banks that carry out investment services) may not receive remuneration from a third party when investment advice or portfolio management services are provided to non-professional customers if such remuneration can have a negative effect on the customers interests. Further, the Review Panel suggested that this rule should also be extended to apply to insurance intermediaries, thereby covering the entire chain from the producer to the distributor. Looking at this part of the provision, we see it is far from controversial. It is a well established principle in Swedish law that investment firms have a general obligation to always act in the best interests of clients. However, and more importantly, the Review Panel also suggested that, as regards the type of remuneration that could have a negative effect on consumers interests, the SFSA ought to be given the power to specifically regulate what types of remuneration should be prohibited. Accordingly the hot potato was passed on to the SFSA, which now has the task of deciding what type of remuneration should be forbidden. Consequences of the proposal The Swedish market for distribution of financial instruments to retail customers outside the spheres of the dominating big banks has by necessity been built up by smaller firms forming alliances and means for cooperation to reach a broader customer base. Such distribution is built on the ability to pay for the distribution. Accordingly, we have currently close to no independent investment advisers who charge customers for investment advice. The investment advice that is provided has instead been financed by other means, one example being reallocation. This is the effect when management fee-sharing arrangements are based on commissions that relate to the size of the invested amount. The investment advice for customers who invest a lower amount is financed by wealthier clients who invest a larger amount, i.e. there is a reallocation of commissions and fees for the benefit of the smaller customer. A ban on commissions would probably lead to a reduced availability of investment advice for retail customers, in particular customers with smaller amounts of money to invest. Intermediaries and advisers who are not employed by the big banks would be among the losers, but also producers, such as fund managers and investment firms, acting independently from the big banks. This, in turn, would lead to lesser competition as regards investment advice and savings products. While the Review Panel acknowledges these disadvantages in its proposal, it nevertheless argues that such disadvantages should be manageable by only making such fees and commissions subject to a ban to the extent they have a negative effect on customers interests. But is that really true? The answer to that question really depends on how the SFSA chooses to regulate the matter. Regulatory options for the SFSA The Review Panel s proposal gives the SFSA a mandate that allows it to regulate what commissions and fees should be prohibited. Unless specifically instructed by the government, the SFSA may, in theory,

6 Global Trustee and Fiduciary Services News and Views First Edition choose not to regulate the matter. In such a case, the proposed rule in the Swedish Securities Act would stand alone and be subject to interpretation as to what fees and commissions do not have a negative effect. For the sake of clarity and foreseeability, it would be better in such a case if the SFSA chose to regulate. If it did, the best guess is that the SFSA would probably issue a regulation that would prohibit the use of third-party remunerations in a similar way as in the UK, i.e. banning everything but up-front payment for investment advice. Another way to go about this would be for the SFSA to issue guidelines (allmänna råd). This is a regulatory tool very much similar to guidelines issued by ESMA, i.e. rules that you may deviate from by applying a comply or explain approach. If you chose to deviate from the guidelines, you would be obliged to explain how you intend to comply with the underlying mandatory provision on which the guidelines rely. This option is available for the SFSA without any changes to the Securities Markets Act now proposed by the Review Panel. However, the SFSA is not likely to use this option, even though it would probably be a better way to deal with the matter. What else can be done? It cannot be argued that there is no problem in the Swedish market, and clearly we need to change something in order to create a sounder market for investment advice. The question is how. If you ask the legislator or the SFSA, it seems the only way to go about this is to throw more mandatory rules at the problem. In this case, it means rules prohibiting certain behaviours, further limiting the possibility of making room to explore alternative solutions. The Review Panel s proposal fails to address two important issues. The first issue is whether it is the role of the legislator to create rules that have a major and immediate impact on how a free market is operating. The most serious aspect of that is it seems to enhance oligopoly rather than stimulate competition. The second issue is that the proposal interferes with the principle of freedom of agreement, as it restricts market participants ability to agree between them as they see fit. Turning this round and looking at the problem from another angle, it seems obvious that all market participants would benefit from a higher degree of confidence from retail investors that would presumably come from further transparency when it comes to fees, commissions and other benefits. Following the debate in Sweden and the sanctions decided by the SFSA, there has also been a shift towards increased transparency and better awareness among retail investors as to what to look out for when assessing different investment services providers and investment alternatives. While there is still much left to do, it does indicate that there is a willingness to make a change, though changing business models takes time and it is also a risky thing as untested business models may fail. There is also the first mover problem, i.e. you do not want to go first if you do not believe the others will follow. The key to solving that issue would be to look to self-regulation. Sweden has a long tradition of self-regulation in the financial market. We have also strong self-regulatory organisations (SROs) for market participants. Among them are the Swedish Securities Dealers Association, the Swedish Bankers Association and the Association of Swedish Insurance Intermediaries. One route to explore would be for SROs to look to issue guidelines applicable to all relevant members. Such guidelines could address how remuneration models need to be designed to preserve clients best interests. Two things could possibly be achieved by this. The first would be sufficient time to adapt to new business models without putting business at risk; the second, to create more room to manoeuvre and to explore alternative solutions that could achieve the same goal. However, it can be assumed that it would not be an easy task for the SRO members to agree on the contents of such guidelines. There is also the question of whether or not it is too late for the SROs to take back the initiative from the legislator. But if they do not, it is not a bad bet that third-party fees and commissions in connection with investment advice will be prohibited entirely. Mattias Anjou Partner Hammarskiöld & Co

Hedge Funds Investment Management Private Investment Funds December 13, 2012

Hedge Funds Investment Management Private Investment Funds December 13, 2012 ROPES & GRAY ALERT Hedge Funds Investment Management Private Investment Funds December 13, 2012 New UK Distribution Rules Effective December 31 the Impact on Fund Managers The UK s Retail Distribution

More information

MiFID II From a compliance to a business challenge

MiFID II From a compliance to a business challenge MiFID II From a compliance to a business challenge Pascal Eber Partner Advisory & Consulting Operations Excellence & Human Capital Deloitte Michael Flynn Director Advisory & Consulting Strategy, Regulatory

More information

Guidelines. Guidelines on certain aspects of the MiFID suitability requirements. 21 August 2012 ESMA/2012/387

Guidelines. Guidelines on certain aspects of the MiFID suitability requirements. 21 August 2012 ESMA/2012/387 Guidelines Guidelines on certain aspects of the MiFID suitability requirements 21 August 2012 ESMA/2012/387 Date: 21 August 2012 ESMA/2012/387 Contents I. Scope 3 II. Definitions 3 III. Purpose 4 IV. Compliance

More information

Communication for undertakings that distribute nonmainstream financial products (such as CFD s, binary options, etc.) online

Communication for undertakings that distribute nonmainstream financial products (such as CFD s, binary options, etc.) online Communication FSMA_2014_05 of 25/07/2014 Communication for undertakings that distribute nonmainstream financial products (such as CFD s, binary options, etc.) online Scope: This Communication is addressed

More information

MiFID II Key aspects. I. Introduction

MiFID II Key aspects. I. Introduction MiFID II Key aspects I. Introduction Yesterday the final texts of the revised Markets in Financial Instruments Directive were published in the Official Journal of the European Union. The texts consist

More information

10 minutes on... post FOFA rewards

10 minutes on... post FOFA rewards September 2012 What you need to know about emerging topics essential to your business. 10 minutes on... post FOFA rewards Brought to you by PwC. Highlights With the FOFA deadline looming and ASIC regulatory

More information

BlackRock is pleased to have the opportunity to respond to the FCA Discussion Paper on the use of dealing commission regime.

BlackRock is pleased to have the opportunity to respond to the FCA Discussion Paper on the use of dealing commission regime. 31 October 2014 Wholesale Conduct Policy Team Financial Conduct Authority 25 The North Colonnade Canary Wharf London E14 5HS Submitted via email to: dp14-03@fca.org.uk RE: DP 14/03: Discussion on the use

More information

WELCOME TO BVI'S ANNUAL PRESS CONFERENCE 10 FEBRUARY 2015 FRANKFURT

WELCOME TO BVI'S ANNUAL PRESS CONFERENCE 10 FEBRUARY 2015 FRANKFURT WELCOME TO BVI'S ANNUAL PRESS CONFERENCE 10 FEBRUARY 2015 FRANKFURT AGENDA I. Demands 1. Removal of competitive distortions and misguided incentive effects 1.1 Example 1: Consultation minutes 1.2 Example

More information

September 2014. I hope you will find the enclosed articles to be of interest and I wish you happy reading!

September 2014. I hope you will find the enclosed articles to be of interest and I wish you happy reading! September 2014 It is my pleasure to welcome you to the Autumn edition of La Mondiale Expat News which focuses on several important regulatory and tax developments at both EU and national levels. I m also

More information

MiFID II Academy: Product Governance. Floortje Nagelkerke 12 April 2016

MiFID II Academy: Product Governance. Floortje Nagelkerke 12 April 2016 MiFID II Academy: Product Governance Floortje Nagelkerke 12 April 2016 Introduction Timing: MiFID II / MiFIR 2 July MiFID II and MiFIR entered into force 19 December Level 2 Consultation on technical standards

More information

Flash News. European Parliament adopts MiFID II. 1. Background. 2. MiFID II for banks, investment firms and asset managers

Flash News. European Parliament adopts MiFID II. 1. Background. 2. MiFID II for banks, investment firms and asset managers www.pwc.lu/regulatory-compliance Flash News European Parliament adopts MiFID II 23 April 2014 Following the political agreement reached on 14 January 2014 by the European Parliament, the Council and the

More information

Remark and administrative fine

Remark and administrative fine 2013-04-15 DECISION Nordea Bank AB FI Ref. 12-7237 Attn: Chairman of the Board of Directors 105 71 STOCKHOLM Remark and administrative fine Finansinspektionen s decision (to be announced on 16 April 2013

More information

MiFID 2: investor protection

MiFID 2: investor protection Eligible counterparties Client classification Algorithmic trading Product governance Suitability and appropriateness MiFID 2: investor protection Independent advice Inducements Product intervention Summary

More information

15 April 2016 Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House Canberra ACT 2600

15 April 2016 Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House Canberra ACT 2600 15 April 2016 Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House Canberra ACT 2600 By email: economics.sen@aph.gov.au Dear Dr Dermody Re: Scrutiny of Advice Life Insurance

More information

Asset management The regulatory challenges ahead

Asset management The regulatory challenges ahead Date: 05 November 2014 ESMA/2014/1333 Asset management The regulatory challenges ahead EFAMA Investment Management Forum 2014 Square Brussels Meeting Centre Steven Maijoor Chair European Securities and

More information

Table of content. MiFID II: getting ready for implementation

Table of content. MiFID II: getting ready for implementation Table of content MiFID II: getting ready for implementation The European Council adopted a set of legislation on 13 May 2014 regulating the trade in financial instruments and the investment services sector.

More information

MiFID II. - Guide for Asset Management Companies -

MiFID II. - Guide for Asset Management Companies - - - Preamble The aim of MiFID II 1 and MiFIR 2 is to revise MiFID I 3. MiFID II requires transposition into national law by 3 July 2016 and entry into application of most its measures from 3 January 2017.

More information

Impact of MiFID II on MiFID Conduct of Business Regime in Ireland

Impact of MiFID II on MiFID Conduct of Business Regime in Ireland Impact of MiFID II on MiFID Conduct of Business Regime in Ireland May 2015 arthurcox.com 2 ARTHUR COX FINANCIAL REGULATORY IMPACT OF MIFID II ON MIFID CONDUCT OF The purpose of this document is to provide

More information

* * * Document created on12 February 2013 This translation is for information purposes only 1/12

* * * Document created on12 February 2013 This translation is for information purposes only 1/12 AMF position recommandation 2013-04 AMF guidelines on the concept of third party introducer with regard to the fight against money laundering and terrorist financing Background regulations: Articles L.561-7

More information

Ref: B15.01 Eumedion response draft revised OECD principles on corporate governance

Ref: B15.01 Eumedion response draft revised OECD principles on corporate governance Organisation for Economic Co-operation and Development (OECD) Corporate Governance Committee 2, rue André Pascal 75775 Paris Cedex 16 France The Hague, 2 January 2015 Ref: B15.01 Subject: Eumedion response

More information

THE FORTY RECOMMENDATIONS OF THE FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING

THE FORTY RECOMMENDATIONS OF THE FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING THE FORTY RECOMMENDATIONS OF THE FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING 1990 A. GENERAL FRAMEWORK OF THE RECOMMENDATIONS 1. Each country should, without further delay, take steps to fully implement

More information

Luxembourg. Newsletter Q2/Q3 2014. News on MiFID II and its implementation. Regulation on key information documents for investment products

Luxembourg. Newsletter Q2/Q3 2014. News on MiFID II and its implementation. Regulation on key information documents for investment products Luxembourg News on MiFID II and its implementation Regulation on key information documents for investment products Final adoption of the UCITS V directive by the EU parliament Newsletter Q2/Q3 2014 Avocats

More information

MiFID II/MiFIR. Implications for Fund Managers. May 2014. 2014 Deloitte LLP. All rights reserved.

MiFID II/MiFIR. Implications for Fund Managers. May 2014. 2014 Deloitte LLP. All rights reserved. /MiFIR Implications for Fund Managers May 2014 Webinar participants Manmeet Rana Senior Manager Audit Deloitte UK mrana@deloitte.co.uk +44 20 7303 8624 Manmeet Rana is a Senior Manager within Deloitte

More information

PensionsEurope position paper on personal pension products

PensionsEurope position paper on personal pension products March 2014 PensionsEurope position paper on personal pension products About PensionsEurope PensionsEurope represents national associations of pension funds and similar institutions for workplace pensions.

More information

COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document. Proposal for a

COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document. Proposal for a EUROPEAN COMMISSION Brussels, XXX SEC(2011) 1227 COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT

More information

Risk-based Supervision and Compliance Function: New Challenges for Credit and Financial Institutions. 5th May 2006

Risk-based Supervision and Compliance Function: New Challenges for Credit and Financial Institutions. 5th May 2006 International Conference Regulatory Compliance and Training: emerging challenges for European Financial System Hellenic Bank Association European Bank Training Network Risk-based Supervision and Compliance

More information

Investments Publication Date: January Legislation Regulations Guidance Investment policy...

Investments Publication Date: January Legislation Regulations Guidance Investment policy... INVESTMENTS Contents 1. Legislation... 2 2. Regulations... 6 3. Guidance... 10 3.1 Investment policy... 10 3.2 Accounting for Investments... 11 3.3 Assessing Investments... 11 Version History Version Date

More information

MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation.

MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation. July 2012 MiFID II. Key interactions between MiFID/MiFIR II and other EU and US financial services legislation. Introduction MiFID is often described as the corner stone of financial services regulation

More information

Incorporating a Duty of Care into the Financial Services & Markets Act. Summary

Incorporating a Duty of Care into the Financial Services & Markets Act. Summary Telephone: 020 7066 5268 Email: enquiries@fs-cp.org.uk June 2015 Incorporating a Duty of Care into the Financial Services & Markets Act Summary The financial services industry has a long and ignoble history

More information

Senior arrangements, Systems and Controls. Chapter 10. Conflicts of interest

Senior arrangements, Systems and Controls. Chapter 10. Conflicts of interest Senior arrangements, Systems and Controls Chapter Conflicts of interest SYSC : Conflicts of interest Section.1 : Application.1 Application.1.1 (1) This section applies to a firm which provides services

More information

FCA Retirement income market study: Interim Report. A response by the National Association of Pension Funds. January 2015 www.napf.co.

FCA Retirement income market study: Interim Report. A response by the National Association of Pension Funds. January 2015 www.napf.co. FCA Retirement income market study: Interim Report A response by the National Association of Pension Funds January 2015 www.napf.co.uk NAPF response to FCA retirement income market study Contents Overview...

More information

Introduction to the legal framework. COM(2011) 656 final (hereinafter MiFID II).

Introduction to the legal framework. COM(2011) 656 final (hereinafter MiFID II). Baker & McKenzie Belgium Client Alert 10 March 2014 For more information, please contact Pierre Berger Partner pierre.berger@bakermckenzie.com Laura Anckaert Associate laura.anckaert@bakermckenzie.com

More information

MUTUAL FUND FEES DISCUSSION PAPER Q&A

MUTUAL FUND FEES DISCUSSION PAPER Q&A Q&A The Canadian mutual fund industry may be facing some of the most significant regulatory changes it has seen in a long time. The changes some ready to be rolled out, some still under development and

More information

Packaged Retail Investment Products Draft Position paper following The European Commission PRIPs Workshop, Brussels, 22 October 2009

Packaged Retail Investment Products Draft Position paper following The European Commission PRIPs Workshop, Brussels, 22 October 2009 Packaged Retail Investment Products Draft Position paper following The European Commission PRIPs Workshop, Brussels, 22 October 2009 Executive Summary * We strongly support the new horizontal approach

More information

CLIENT CATEGORIZATION

CLIENT CATEGORIZATION CLIENT CATEGORIZATION 1. Fidelisco Capital Markets Ltd ( Fidelisco or the Company ) is an investment firm regulated by the Cyprus Securities and Exchange Commission under license no. 181/12. 2. The Client

More information

Regulatory Impact Statement for Third Amendment to 11 NYCRR 136 (Insurance Regulation 85).

Regulatory Impact Statement for Third Amendment to 11 NYCRR 136 (Insurance Regulation 85). Regulatory Impact Statement for Third Amendment to 11 NYCRR 136 (Insurance Regulation 85). 1. Statutory authority: The Superintendent s authority for the adoption of the rule to 11 NYCRR 136 is derived

More information

Luxembourg Life Assurance for International Investors

Luxembourg Life Assurance for International Investors Luxembourg Life Assurance for International Investors 2 3 CONTENTS 4 Luxembourg Life Assurance for International Investors 4 A truly international focus 6 Maximum protection 8 Solutions designed for sophisticated

More information

The Future Regulation of Venture Capital in the EU

The Future Regulation of Venture Capital in the EU The Future Regulation of Venture Capital in the EU Introduction The Irish Venture Capital Association (IVCA) is the representative organisation for all venture capital firms in Ireland. Venture capital

More information

CP ON TECHNICAL ADVICE ON CRITERIA AND FACTORS FOR INTERVENTION POWERS CONCERNING STRUCTURED DEPOSITS. Contents

CP ON TECHNICAL ADVICE ON CRITERIA AND FACTORS FOR INTERVENTION POWERS CONCERNING STRUCTURED DEPOSITS. Contents EBA/CP/2014/20 5 August 2014 Consultation Paper Draft Technical advice on possible delegated acts on criteria and factors for intervention powers concerning structured deposits under Article 41 and Article

More information

Guidance Note Client Categorisation. Markets in Financial Instruments Directive [MiFID]

Guidance Note Client Categorisation. Markets in Financial Instruments Directive [MiFID] Markets in Financial Instruments Directive [MiFID] Issued : 01 November 2007 Table of Contents 1 Introduction... 3 1.1... 3 2 What is a client?... 3 3 Client Categories... 4 3.1 Definition of a retail

More information

1. Introduction...2. 2. The standard for independent advice 3. 3. Restricted advice...7. 4. Communicating the nature of a firm s advice services 9

1. Introduction...2. 2. The standard for independent advice 3. 3. Restricted advice...7. 4. Communicating the nature of a firm s advice services 9 Financial Services Authority Finalised guidance Retail Distribution Review: Independent and restricted advice June 2012 Contents 1. Introduction...2 2. The standard for independent advice 3 3. Restricted

More information

Strategy, Marketing and Distribution AIFMD Newsbrief

Strategy, Marketing and Distribution AIFMD Newsbrief www.pwc.lu/aifm Strategy, Marketing and Distribution AIFMD Newsbrief A closer look at the impact of AIFMD on how managers market and distribute their funds April 2013 Introduction On 19 December 2012 the

More information

MIFID II \ MIFIR Workshop A Master Class on the revised Markets In Financial Instruments Directive

MIFID II \ MIFIR Workshop A Master Class on the revised Markets In Financial Instruments Directive MIFID II \ MIFIR Workshop A Master Class on the revised Markets In Financial Instruments Directive - London: 4th October & 25th October 2016 - Dublin: 8th November 2016 - Edinburgh: 24th November 2016

More information

Recitals... 3. Recital 44... 3 Recital 46... 4 Recital 47... 5 Recital 48 a (new)... 6 TITLE I DEFINITIONS AND SCOPE... 6

Recitals... 3. Recital 44... 3 Recital 46... 4 Recital 47... 5 Recital 48 a (new)... 6 TITLE I DEFINITIONS AND SCOPE... 6 EFAMA Position Paper on the European for a Directive of the European Parliament and of the Council on markets in Financial Instruments Repealing Directive 2004/39/EC of the European Parliament and of the

More information

Retrocessions A thing of the past?

Retrocessions A thing of the past? Retrocessions A thing of the past? Andrew Power Partner Consulting Deloitte Andreas Timpert Partner Consulting Deloitte Erika Merizzi Consultant Consulting Deloitte Ever since the global financial crisis

More information

Effective 1 July 2011, new organisational requirements were imposed on management

Effective 1 July 2011, new organisational requirements were imposed on management line of Sight UCITS IV DIRECTIVE NEW ORGANIsATIONAL REQUIREMENTS FOR MANAGEMENT COMPANIES Effective 1 July 2011, new organisational requirements were imposed on management companies and self-managed investment

More information

Terms of Access to Payment Systems

Terms of Access to Payment Systems 1 Terms of Access to Payment Systems The Different Positions of Small and Large Banks English summary of Swedish Competition Authority report 2006:1 2 Summary The Swedish banking market is dominated by

More information

EuroFinuse Response to Sven Giegold MEP Call for Input on UCITS, PRIPs and IMD Legislation

EuroFinuse Response to Sven Giegold MEP Call for Input on UCITS, PRIPs and IMD Legislation EuroFinuse Response to Sven Giegold MEP Call for Input on UCITS, PRIPs and IMD Legislation The European Federation of Financial Services Users (EuroFinuse) is deeply involved in the discussions on the

More information

September 2014. The CSD Regulation A guide for clients

September 2014. The CSD Regulation A guide for clients September 2014 The CSD Regulation A guide for clients 1 Contents Introduction 3 About this guide 3 Background 3 Provisions for securities settlement (Title II) 4 Provision of banking-type ancillary services

More information

Response from the Danish FSA regarding the consultation on the Review of the Insurance Mediation Directive (IMD)

Response from the Danish FSA regarding the consultation on the Review of the Insurance Mediation Directive (IMD) European Commission DG Internal Market and Services B- 1049 Brussels 2 March 2011 Response from the Danish FSA regarding the consultation on the Review of the Insurance Mediation Directive (IMD) The Danish

More information

BVI s position on the Consultative Document of the Basel Committee on Banking Supervision: Capital requirements for banks equity investments in funds

BVI s position on the Consultative Document of the Basel Committee on Banking Supervision: Capital requirements for banks equity investments in funds Frankfurt am Main, 4 October 2014 BVI s position on the Consultative Document of the Basel Committee on Banking Supervision: Capital requirements for banks equity investments in funds BVI 1 gladly takes

More information

AFIC S RESPONSE TO THE REPORT OF THE ALTERNATIVE INVESTMENT EXPERT GROUP RELATING TO EUROPEAN PRIVATE EQUITY

AFIC S RESPONSE TO THE REPORT OF THE ALTERNATIVE INVESTMENT EXPERT GROUP RELATING TO EUROPEAN PRIVATE EQUITY AFIC S RESPONSE TO THE REPORT OF THE ALTERNATIVE INVESTMENT EXPERT GROUP RELATING TO EUROPEAN PRIVATE EQUITY The French Private Equity Association, the Association Française des Investisseurs en Capital

More information

Insurance Europe response to Joint Committee consultation on guidelines for cross-selling practices

Insurance Europe response to Joint Committee consultation on guidelines for cross-selling practices Insurance Europe response to Joint Committee consultation on guidelines for cross-selling practices Our reference: COB-DIS-15-038 Date: 20 March 2015 Contact person: Arthur Hilliard, Policy Advisor, Conduct

More information

DETAILED TABLE OF CONTENTS

DETAILED TABLE OF CONTENTS DETAILED TABLE OF CONTENTS Table of Cases Table of Legislation List of Abbreviations xxii xxv lxi I. Introduction 1 1.1 EU Securities and Markets Regulation 1 1.2 Securities and Markets Regulation and

More information

Final Best Interest Contract Exemption

Final Best Interest Contract Exemption news and features home Final Best Interest Contract Exemption April 11, 2016 The Department of Labor s conflict of interest regulation package, re-defining who is an ERISA investment advice fiduciary,

More information

MiFID II: The New Investor Protection Regime

MiFID II: The New Investor Protection Regime May 2014 Overview On 13 May 2014, the Council of the European Union formally endorsed a new regulatory regime that will replace the current Markets in Financial Instruments Directive ( MiFID ), which has

More information

CODE OF ETHICS FOR THE MANAGEMENT OF COLLECTIVE INVESTMENT SCHEMES

CODE OF ETHICS FOR THE MANAGEMENT OF COLLECTIVE INVESTMENT SCHEMES CODE OF ETHICS FOR THE MANAGEMENT OF COLLECTIVE INVESTMENT SCHEMES Table of Contents I Objectives 2 II Scope, binding force 2 III Code of Ethics for the Asset Manager of Collective Investment Schemes 2

More information

Voting Rights Policy

Voting Rights Policy Mora Asset Management Luxembourg S.A. Voting Rights Policy October 2015 Document type Policy Procedure X Category Group Management Company Target audience X All staff Policy Related policy Related procedure

More information

List of provisions for consumer protection

List of provisions for consumer protection List of provisions for consumer protection Type of provision Lending platforms Equity and/or Debt platforms Maximum amount of investment for 40.000 Euro 20.000 Euro consumers on the platform Maximum frequency

More information

Developing our approach to implementing MiFID II conduct of business and organisational requirements

Developing our approach to implementing MiFID II conduct of business and organisational requirements Financial Conduct Authority Developing our approach to implementing MiFID II conduct of business and organisational requirements March 2015 Discussion Paper Consultation Paper CPXX/XX Developing our approach

More information

CHAPTER 6 INSTITUTIONAL FRAMEWORK

CHAPTER 6 INSTITUTIONAL FRAMEWORK CHAPTER 6 INSTITUTIONAL FRAMEWORK SUPERVISORY STRUCTURE FOR THE VOLUNTARY HEALTH INSURANCE SCHEME 6.1. We propose to put in place a governing framework for overseeing the implementation of the Voluntary

More information

Interest Representative Register ID number: 5437826103-53. 10 August 2011. By email to: Markt-g4@ec.europa.eu. Dear Sir/Madam

Interest Representative Register ID number: 5437826103-53. 10 August 2011. By email to: Markt-g4@ec.europa.eu. Dear Sir/Madam Interest Representative Register ID number: 5437826103-53 10 August 2011 By email to: Markt-g4@ec.europa.eu Dear Sir/Madam A New European Regime for Venture Capital IMA represents the UK-based investment

More information

POLICY. Client classification. LAST UPDATED March 2014. Client classification policy March 2014 1

POLICY. Client classification. LAST UPDATED March 2014. Client classification policy March 2014 1 POLICY Client classification LAST UPDATED March 2014 1 Client classification policy Table of contents TABLE OF CONTENTS 2 1. OUTLINE OF THE MIFID 3 1.1. MiFID s aims 3 1.2. MiFID s scope 3 1.2.1. Investment

More information

The Outlook for Institutional Investment in Hedge Funds in the UK

The Outlook for Institutional Investment in Hedge Funds in the UK The Outlook for Institutional Investment in Hedge Funds in the UK Presented by Steve_ Brawn@hotmail.com, April 2002. Summary This brief document sets out to demonstrate that a case exists for an individual

More information

Sweden Takeover Guide

Sweden Takeover Guide Sweden Takeover Guide Contacts Marcus Nivinger Advokatfirman Delphi marcus.nivinger@delphi.se Contents Page INTRODUCTION 1 THE REGULATION OF TAKEOVERS 1 A SURVEY OF THE REGULATION 1 THE BIDDING PROCESS

More information

Response by Swedish authorities to the European Commission s public consultation on short selling

Response by Swedish authorities to the European Commission s public consultation on short selling Ministry of Finance Financial Institutions and Markets Fi2010/3634 10-5913 Financial Stability Department 2010-560-AFS European Commission Internal Markets and Services DG Financial Institutions markt-g3-consultations@ec.europa.eu

More information

Irving Planning & Investments, Ltd.

Irving Planning & Investments, Ltd. Irving Planning & Investments, Ltd. 3333 South Wadsworth Blvd. Suite D320 Lakewood, CO 80227 303.985.4100 www.irvingplanning.com Disclosure Brochure July 18, 2013 This brochure provides information about

More information

Securities. Regulatory. Derivatives. Deals & Cases. Events

Securities. Regulatory. Derivatives. Deals & Cases. Events No. 2/2015 Editors: René Bösch Thomas U. Reutter Patrick Schleiffer Peter Sester Philippe A. Weber Thomas Werlen Securities Inaugural Issuance of TLAC-Eligible Senior Unsecured Notes by Swiss Bank By René

More information

EUROPEAN DIRECTIVE ON MARKETS IN FINANCIAL INSTRUMENTS (MIFID)

EUROPEAN DIRECTIVE ON MARKETS IN FINANCIAL INSTRUMENTS (MIFID) EUROPEAN DIRECTIVE ON MARKETS IN FINANCIAL INSTRUMENTS (MIFID) BETTER PROTECTIONFOR INVESTORS CONTENT MORE TRANSPARENCY FOR INVESTMENT SERVICES 3 THE MAIN SUBJECTS COVERED 4 ADVANTAGES OF TRANSPARENCY

More information

Supplementary Appendix Table A DESCRIPTION OF THE DIRECTIVES OF THE FINACIAL SERVICES ACTION PLAN (FSAP)

Supplementary Appendix Table A DESCRIPTION OF THE DIRECTIVES OF THE FINACIAL SERVICES ACTION PLAN (FSAP) Supplementary Appendix Table A DESCRIPTION OF THE DIRECTIVES OF THE FINACIAL SERVICES ACTION PLAN (FSAP) Directive Name Directive No. Deadline Implementation of the Settlement Finality Directive 1998/26/EC

More information

Meeting investors' expectations

Meeting investors' expectations Financial Conduct Authority Thematic Review TR16/3 Meeting investors' expectations April 2016 TR16/3 Meeting investors' expectations Contents 1 Executive summary 3 2 Our approach for the Meeting Investors'

More information

Discussion on the use of dealing commission regime: Feedback on our thematic supervisory review and policy debate on the market for research

Discussion on the use of dealing commission regime: Feedback on our thematic supervisory review and policy debate on the market for research Financial Conduct Authority Discussion Paper DP14/3 Discussion on the use of dealing commission regime: Feedback on our thematic supervisory review and policy debate on the market for research July 2014

More information

Interchange fee regulation: consultation response

Interchange fee regulation: consultation response Interchange fee regulation: consultation response October 2015 Interchange fee regulation: consultation response October 2015 Crown copyright 2015 This publication is licensed under the terms of the Open

More information

S W ISS I NVESTMENT R EPORT* 17

S W ISS I NVESTMENT R EPORT* 17 S W ISS I NVESTMENT R EPORT* 17 FEBRUARY 2016 * The Swiss Investment Report is provided by Wenfei Attorneys at Law Ltd. ( Wenfei ), a Swiss law firm which has gained extensive experience in providing services

More information

Dear Susannah, Consultation on a Stewardship Code for Institutional Investors

Dear Susannah, Consultation on a Stewardship Code for Institutional Investors Robert G Hardy Vice President Susannah Haan Financial Reporting Council Fifth Floor Aldwych House 71-91 Aldwych London WC2B 4HN 14 th April, 2010 Dear Susannah, Consultation on a Stewardship Code for Institutional

More information

Regulation of Socially Responsible Investment in the Financial Services Sector: Global Trends and Lessons

Regulation of Socially Responsible Investment in the Financial Services Sector: Global Trends and Lessons Regulation of Socially Responsible Investment in the Financial Services Sector: Global Trends and Lessons Ben Richardson Osgoode Hall Law School, Toronto The era of finance capitalism Massive growth of

More information

IFSA Guidance Note No. 10.00

IFSA Guidance Note No. 10.00 Brokerage Arrangements December 2006 Main features of this Guidance Note are to: specify the principles to be adopted in relation to Investment Manager Brokerage arrangements; provide guidance in the interpretation

More information

Mergence Investment Managers (Pty) Ltd. Conflicts of Interest Policy and Conflict Management Framework

Mergence Investment Managers (Pty) Ltd. Conflicts of Interest Policy and Conflict Management Framework Mergence Investment Managers (Pty) Ltd Conflicts of Interest Policy and Conflict Management Framework Updated: June 2012 2 Preamble This document outlines the conflicts of interest / conflict management

More information

PRIPs: Proposed Regulation on pre-sale disclosures for Packaged Retail Investment Products interaction with RDR and MiFID II

PRIPs: Proposed Regulation on pre-sale disclosures for Packaged Retail Investment Products interaction with RDR and MiFID II gulation on pre-sale disclosures for PRIPS European Commission publishes proposed Regulation on pre-sale disclosures for Packaged R PRIPs: Proposed Regulation on pre-sale disclosures for Packaged Retail

More information

According to section 53 of the Insurance Act the insurance intermediary is only empowered with respect to the transaction in which it takes part to:

According to section 53 of the Insurance Act the insurance intermediary is only empowered with respect to the transaction in which it takes part to: Argentina MANZANO, LÓPEZ SAAVEDRA & RAMIREZ CALVO Martin Manzano and Ignacio Shaw mmanzano@mlsrc.com.ar; ishaw@mlsrc.com.ar 1. Insurance intermediation activities 1.1 Is the distribution of insurance products

More information

KIDs requirement under PRIIPs Regulation incompatible with wholesale energy trading

KIDs requirement under PRIIPs Regulation incompatible with wholesale energy trading Summary KIDs requirement under PRIIPs Regulation incompatible with wholesale energy trading Brussels, 21 July 2016 Europex believes that the requirements laid out in the PRIIPs Regulation and its accompanying

More information

1. Retail Client is a client who is not a professional client or an eligible counterparty.

1. Retail Client is a client who is not a professional client or an eligible counterparty. Introduction Trading Point of Financial Instruments Ltd operating under the trading name XM.com is a Cypriot Investment Firm ("CIF") registered with the Registrar of Companies in Nicosia under number:

More information

Remuneration and Incentives

Remuneration and Incentives Remuneration and Incentives FSA s Final Guidance on the risks to customers from financial incentives. Covering best practice solutions and guidance on monitoring February 2013 Risks to Customers from FinaNcial

More information

Understanding General Pension provision

Understanding General Pension provision Understanding General Pension provision Pension Series What is a pension? A pension is a long-term savings plan into which you can input a regular amount or lump sum amounts to build up a fund for your

More information

What can we learn from the EU about global convergence of financial regulation?

What can we learn from the EU about global convergence of financial regulation? What can we learn from the EU about global convergence of financial regulation? Christian Leuz J. Sondheimer Professor of Intl. Economics, Finance and Accounting Slide 2 Big Picture Questions A question

More information

Israel LEVITAN, SHARON & CO. Peggy Sharon and Dror Zamir office@levitansharon.co.il. 1. Insurance intermediation activities

Israel LEVITAN, SHARON & CO. Peggy Sharon and Dror Zamir office@levitansharon.co.il. 1. Insurance intermediation activities Israel LEVITAN, SHARON & CO. Peggy Sharon and Dror Zamir office@levitansharon.co.il 1. Insurance intermediation activities 1.1 Is the distribution of insurance products (hereinafter referred to as insurance

More information

9 February Brent J. Fields Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC

9 February Brent J. Fields Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 9 February 2015 Brent J. Fields Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-1090 Re: Self-Regulatory Organizations: Financial Industry Regulatory Authority, Inc.:

More information

11 May 2005. The Blurring of Banking, Insurance & Securities. Good Morning, Dr. Pontes (Felix), Distinguished guests, Ladies and Gentlemen,

11 May 2005. The Blurring of Banking, Insurance & Securities. Good Morning, Dr. Pontes (Felix), Distinguished guests, Ladies and Gentlemen, Speech by Mr. Richard Yuen, Commissioner of Insurance, Hong Kong SAR Government at the Annual Meeting of International Association of Insurance Fraud Agencies Macau 11 May 2005 The Blurring of Banking,

More information

E-COMMERCE GOES MOBILE: SEEKING COMPETITIVENESS THROUGH PRIVACY

E-COMMERCE GOES MOBILE: SEEKING COMPETITIVENESS THROUGH PRIVACY E-COMMERCE GOES MOBILE: SEEKING COMPETITIVENESS THROUGH PRIVACY Oana Dolea 7 th Annual Leg@l.IT Conference March 26th, 2013 Montreal, Canada INTRODUCTION Mobile e-commerce vs. E-commerce Mobile e-commerce:

More information

25-5-2009 Systeem in zaken Arena Consulting

25-5-2009 Systeem in zaken Arena Consulting Summary Introduction The Financial Supervision Office (BFT = Bureau Financieel Toezicht) is responsible for the financial supervision of about 1450 civil law notaries, 2000 junior civil law notaries, 380

More information

AUDIT REPORT, SUMMARY. Summary. Government measures against overindebtedness SWEDISH NATIONAL AUDIT OFFICE

AUDIT REPORT, SUMMARY. Summary. Government measures against overindebtedness SWEDISH NATIONAL AUDIT OFFICE AUDIT REPORT, SUMMARY 1 Summary Government measures against overindebtedness (RiR 2015:14) SWEDISH NATIONAL AUDIT OFFICE 1 Government measures against overindebtedness The Debt Relief Act regulates three

More information

Navigating the Regulatory Maze. AIFMD Impact on Service Providers

Navigating the Regulatory Maze. AIFMD Impact on Service Providers www.pwc.com Navigating the Regulatory Maze Navigating the Regulatory Maze AIFMD Impact on Service Providers January 2011 AIFMD Impact on Service Providers The Alternative Investment Fund Managers Directive

More information

EFAMA Code for external governance

EFAMA Code for external governance EFAMA Code for external governance Principles for the exercise of ownership rights in investee companies 06.04.2011 18 Square de Meeûs B-1050 Bruxelles +32 2 513 39 69 Fax +32 2 513 26 43 e-mail : info@efama.org

More information

The Evolution of the MPF System - the Default Investment Strategy

The Evolution of the MPF System - the Default Investment Strategy Classified Post HR Conference 2016 The Evolution of the MPF System - the Default Investment Strategy Cheng Yan-chee Chief Corporate Affairs Officer and Executive Director Mandatory Provident Fund Schemes

More information

Regulatory Responses in a Rapidly Evolving Industry. Susan Wolburgh Jenah President and CEO Investment Industry Regulatory Organization of Canada

Regulatory Responses in a Rapidly Evolving Industry. Susan Wolburgh Jenah President and CEO Investment Industry Regulatory Organization of Canada Regulatory Responses in a Rapidly Evolving Industry Susan Wolburgh Jenah President and CEO Investment Industry Regulatory Organization of Canada At the Investment Industry Association of Canada (IIAC)

More information

ESMA s Discussion Paper on Proxy Advisory

ESMA s Discussion Paper on Proxy Advisory DEUTSCHES AKTIENINSTITUT ESMA s Discussion Paper on Proxy Advisory Deutsches Aktieninstitut s response 25 June, 2012 Correlation between proxy advice and investor voting behaviour (IV.II.) 1) How do you

More information

MiFID II, Research Unbundling, and What it Means for You

MiFID II, Research Unbundling, and What it Means for You AUTHORS Jack Pollina Managing Director Head of Global Commission Management and Hedge Fund Business Development jack.pollina@itg.com CONTACT Asia Pacific +852.2846.3500 Canada +1.416.874.0900 EMEA +44.20.7670.4000

More information

CONCEPT PAPER ON REGULATION OF INVESTMENT ADVISORS

CONCEPT PAPER ON REGULATION OF INVESTMENT ADVISORS 1. Background CONCEPT PAPER ON REGULATION OF INVESTMENT ADVISORS 1.1 Section 11 (2)(b) of SEBI Act empowers SEBI to register and regulate working of Investment Advisors and such other intermediaries who

More information

Product Intervention in the UK and the New FCA

Product Intervention in the UK and the New FCA News Bulletin July 5, 2011 Product Intervention in the UK and the New FCA Background As we have previously discussed, 1 the UK Financial Services Authority (the FSA ) signalled a sea change in the way

More information

Before turning to detailed remarks on the questions for consultation, we would like to draw EBA s attention to our key issues and concerns.

Before turning to detailed remarks on the questions for consultation, we would like to draw EBA s attention to our key issues and concerns. Frankfurt am Main 16 August 2013 BVI s position on the Draft Regulatory Technical Standards on the determination of the overall exposure to a client or a group of connected clients in respect of transactions

More information