Only 195 days left to the entry into force of the MiFID II directive!
The European Commission and ESMA (European Securities and Markets Authority) have already issued numerous guidance and technical implementing measures, which substantiate MiFID II in more detail. Implementation in the individual Member States is also progressing accordingly.
Implementation in neighbouring countries – the legislation is ready….
Last year, France and Italy have already issued legislative changes concerning MiFID II. Liechtenstein and Germany completed the adoption of corresponding legislative revisions in April and May 2017 respectively.
These neighbours, which are relevant to Swiss external asset managers, have already laid the foundations for the application of the investor protection provisions in order to implement MiFID II in a timely manner.
… time will be is running out for financial institutions
On the other hand, financial institutions in the Member States, particularly in Germany, are still in the process of implementation. According to recent surveys (MiFID II-Readiness Index, PPI AG), these have averaged around half of the MiFID II requirements. The timely implementation of MiFID II, therefore, still requires great efforts from financial institutions, not least because many of them have favoured other projects after the postponement announced at the beginning of last year.
MiFID II analysis and (potential) implementation by Swiss external asset managers
The first step is to evaluate the potential impact of the MiFID II investor protection provisions on the financial institution. In particular, the information and documentation obligations associated with MiFID II, as well as the prohibition of the adoption of retrocessions for discretionary mandates and independent advisory mandates, may entail additional costs and loss of revenue. Possible implementation measures in this context may require a considerable amount of time.
The time and finances to be invested in connection with the implementation of MiFID II also lead to a specific added value for Swiss external asset managers both now and in the near future: in fact, a very large proportion of the requirements of the future Swiss regulations FinSA and FinIA would have already been implemented. Based on available information, these requirements will tend to contain less detailed provisions than MiFID II with regard to investor protection.
Geissbühler Weber Fidinam SA (GWFi SA) supports Swiss financial service providers in this implementation process. Over a face-to-face meeting, Geissbühler Weber Fidinam SA will show you, based on a previously completed self-assessment and in a practical manner, your individual need for action in connection with the investor protection provisions of MiFID II.
The self-assessment is available online at the following link: https://gwfi.ch/en/mifid-ii-assessment-external-asset-managers/