Our products and experience

The new requirements in MiFID II / MiFIR will require many financial institutions and end users to rethink their business models and what changes they need to make to comply and compete in future. We have already helped several clients to influence the secondary legislation and plan their projects, and MiFID II and MiFIR will continue to be a key focus of our team’s work over the coming year.

MiFID II tools

We have created the following tools to assist clients with their MiFID II projects:

Strategy

We have been working with several firms to help them work out:

  • How MiFID II will affect their business strategies and structures
  • How they might need or want to change their models to minimize burden, maximize opportunities or simply comply
  • Which aspects of MiFID II they should prioritize as a result

Influence

We have been working with several firms to determine their key messages and how best to communicate those to the right bodies at the right times in a way which will maximize their chances of being effective. This can involve:

  • Helping clients to respond to Level 2 consultations
  • Helping clients to influence the Level 2 process
  • Putting clients in touch with other companies with aligned interests

Structural advice

Many companies will face the question whether their current trading structures work or whether they need to reorganize themselves or become authorized for the first time or change the scope of their licences. We advise clients on a range of structural issues, including:

  • Optimizing trading structures including through the use of exemptions
  • Advising on how trading arrangements sit within the trading platform concepts and which obligations they trigger
  • Ensuring compliant sales and distribution mechanisms

Regulatory implementation projects

Once clients have decided on changes they want or need to make to their business structure or offerings, we assist with implementation projects such as:

  • How and what it means to become authorized and exercise passports
  • What firms outside the EU will need to do if they want to continue their European business operations
  • Establishing MTFs and OTFs

Legal documentation projects

Firms may need to amend their own documentation to reflect structural changes in their organizations or the market with which they interface, or to reflect changes to their internal practices and relationships with other firms in the sales chain to comply with MiFID II. We can help firms decide whether to be proactive or reactive and to understand the purpose and risk of the documentation with which they are presented.  

For example:

  • Drafting and reviewing rules for markets and trading platforms
  • Amending and negotiating execution and brokerage agreements between firms
  • Reviewing and updating client agreements and terms of business

Risk and compliance policies

MiFID II reflects the regulators' continuing emphasis on culture, communication and evidence of compliance. We work with firms to design, update and improve policies and procedures that work for the firm, its staff and the regulators and then to roll out implementation of those new practices. Areas that are likely to be of particular interest are:

  • Best execution
  • Inducements
  • Research

Added value

We are committed to helping firms keep on top of MiFID II. Pegasus is our dedicated online resource housing all our MiFID II know-how and links to the other resources you will need for any MiFID II project. We have a programme of MiFID II events across Europe and also participate in those run by some of the industry bodies. As well as the materials for these events, we have published a series of short videos and briefing notes on different aspects. We are always pleased to talk to potential clients about the issues as they affect them in more detail so please get in touch if this would be of interest.

作者

Global Head of Financial Services
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