MIFID

Course Overview

The MiFID deadline of November 2007 cannot be ignored and with it comes a series of structural changes that organisations need to implement to ensure compliance. On completing this course, delegates will have a comprehensive understanding of the various implications and be thoroughly equipped to help their organisation implement and comply with this directive.

Skills Gained

The seminar has been designed to provide delegates with the knowledge and skills needed to understand and support compliance with the MiFID directive.

Audience

This course is intended for managers and professionals from:

• Compliance
• Operations
• Risk
• IT
• Legal
• Internal Audit
• Internal Controls
• Trading
• Portfolio Management
• Hedge Funds and Alternative Investments
• IT, Security and Management Consultants

This course is recommended for the directors, managers and professionals who require a clear understanding of MiFID and the changes in financial markets after MiFID.

Prerequisites

Other than specifics detailed under Target Audience, there are no pre-requisites.

Course Outline

Introduction

• European Union's legislation: Directives and Regulations
• The European Unions Financial Services Action Plan (FSAP)
• From the Investment Services Directive (ISD) to MiFID

MiFID and the Lamfalussy process

• Level 1: Framework Principles
• Level 2: Implementation of Principles. Detailed Technical Measures
• Level 3: Strengthening Cooperation Among Regulators
• Level 4: Enforcement

MiFID: An Overview

• From Know Your Customer (KYC) to Client Classification (CC)
• Best Execution and Information to Clients
• Order Handling
• Suitability
• Extended Passport: Services across Europe
• Conduct of Business
• Stock Exchanges compete with Trading Platforms and Investment Firms
• Systematic Internalisers
• Transaction Reporting across the EEA

Definitions and Scope

• How MiFID extends the coverage of the Investment Services Directive
• Exemptions and Optional exemptions
• Definitions
• MiFID and options, futures, swaps, forward rate agreements

Authorisation

• Requirements and Scope
• Relations with third countries

Operating Conditions for Investment Firms

• On-going supervision
• Conflicts of interest
• Conduct of Business (COB) obligations

Rights of Investment Firms

• Freedom to provide investment services and activities
• Establishment of a branch
• Access to regulated market

Regulated Markets

• Organisational requirements
• Admission of financial instruments to trading
• Suspension and removal of instruments from trading
• Monitoring of compliance
• Pre-trade and Post-trade transparency requirement

MiFID and Corporate Governance

• The impact of MiFID on corporate governance
• The role of the board of directors and executive management

MiFID: The Interpretations

• From the Directive to the Interpretations and the Technical Measures
• CESR: The Committee of European Securities Regulators
• CESR - MiFID Level 2 Expert Group
• CESR - MiFID Level 3 Expert Group
• Level 4 challenges

MiFID and the World

• MiFID and the European Economic Area (EEA)
• MiFID and countries outside the European Economic Area
• MiFID and the USA: Similarities and differences between the Regulation for National Market System (Reg NMS) in the United States and the MiFID in EU

MiFID and other Directives

• Interaction between MiFID and other regulatory initiatives
• MiFID, Basel ii and the Capital Requirements Directive
• MiFID and the 8th Company Law Directive
• MiFID and the Financial Conglomerates Directive
• MiFID and UCITS iii
• MiFID and the 3rd Anti Money Laundering Directive of the EU
• Using MiFID data for compliance with other directives

MiFID and Alternative Investments

• MiFID and Hedge Funds
• New challenge for Hedge Fund managers
• Sophisticated onshore and offshore legal structures
• A new pressure for Transparency
• Minimizing regulatory, operational and compliance risks
• MiFID and Mutual Funds
• MiFID and mutual recognition of alternative investment products authorised under different regimes
• Management and Administration of Alternative Investments inside and outside the European Union

MIFID: Tomorrow

• Increased competition
• Pre- and post-trade transparency
• New risks and opportunities
• Hedge Funds and Alternative Investments after MiFID
• The "Fund of Funds" opportunity for regulators