With new legislation, MiFiD II, coming into effect we’ve put together some questions and answers to help you understand the impact on you.
What is MiFID II?
Markets in Financial Instruments Directive II (MiFID II) is a European-wide legislative framework for regulating the operation of financial markets in the EU. It builds on the existing MiFID legislation and seeks to increase market transparency and investor protection, enhance governance and oversight, and align regulation across the EU.
When did MiFID II come into effect?
3rd January 2018
How will MiFID II Impact our clients?
MiFID II will not have a fundamental effect on you or how we do business. You will largely find that it is business as normal. However, a key reason for the implementation of MiFID II is to increase client transparency of product provider, fund manager and financial planner costs. Therefore, you will see more details of the charges you have paid across all aspects of your portfolio as time goes on.
We must also ensure that we review the suitability of your portfolio with you at least once a year. For this we will continue to request and record your up-to-date financial position so that we can make sure your portfolio remains suitable to meet your needs and objectives. If any changes are required to your portfolio, to keep you on track with your financial planning objectives, we will discuss our recommendations with you. With this in mind, in order to make the most of your review meetings, please continue to help us by providing this data ahead of the meeting.
What do I need to do?
Nothing at this time. Our team will discuss with you any additional information we require from you, or information we are required to share with you, through the course of the year.
What if I have more questions?
If you have any questions regarding this document or MiFID II, speak to us at Citywide Financial Partners today.