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MiFID & MiFIR

Level:
Intended audience:
Solution Store:

Advanced
Anyone providing investment services
Click here to access the templates

Introduction

The Markets in Financial Instruments Directive 2004/39/EC (MiFID)  is the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. It has been applicable across the European Union since November 2007.

MiFID applies to Financial Services businesses including investment banks, portfolio managers, stockbrokers, broker dealers, corporate finance firms, many futures and options firms and some commodities firms working anywhere in the European Economic Area ('the EEA'). It will affect all participants in the EU's financial markets, whether they are based in the EU or elsewhere, including providers of asset management and custodial services.

MIFID conducts of business and organisational requirements for investment firms; authorisation requirements for regulated markets; regulatory reporting to avoid market abuse; trade transparency obligation for shares; and rules on the admission of financial instruments to trading.

In August 2006 the Commission adopted implementing measures (a directive and a regulation) to develop a number of the provisions set out in the framework directive 2004/39/EC. These measures emerged from a lengthy consultation and negotiation process. They were endorsed by the European Parliament and voted on in the ESC (European Securities Committee).

In 2014, the European Parliament endorsed a revised Directive 2014/65/EU (MiFID II) and a new Regulation (MiFIR) which include reforms to reshape the financial markets, bank products and services and the relationship between banks and their customers.

The date of application for MiFID II and MiFIR has been extended to 3 January 2018. These new rules are designed to take into account developments in the trading environment since the implementation of MiFID in 2007 and, in light of the financial crisis, to improve the functioning of financial markets making them more efficient, resilient and transparent.

 

Key Benefits

Here are the key benefits of the RequirementONE MiFID Solution.

Simpler Implementation

The Directive and Resolution are broken into individual records which help with gap analysis to ensure complete coverage.

Collaboration

The Framework can facilitate internal and external collaboration through a common understanding and shared goals.

Mapping Controls and Policies

Individual controls and policies may apply to numerous frameworks. These can be maintained as an interlinked set of procedures to avoid duplication of effort.

A Single Point of Truth

Each compliance element is stored as a record and can be updated, commented, controlled and audited individually. Data is accessible to all stakeholders without version control issues.

Dependency Linking

All links and interfaces can be defined and maintained showing dependencies between various policies.

Reporting

Track the progress of MiFID compliance. In-line analytics highlight gaps in coverage, traceability of changes and project status.

Auditing

Internal and External audit teams benefit from a specialized interface with full visibility to review and evaluate procedures.

Typical Use Cases

Here is a typical, but not exhaustive, list of roles and associated use cases that would interact with this solution.

Role Use Case
End users
  • Consume the latest policies, controls and procedures
Compliance team
  • Use the framework as a guide to implement the relevant controls and policies
  • Manage and report against compliance status
Executive
  • Roadmap to achieve or improve MiFID Compliance

Templates

These apps and templates are used for the solution.

What Description
Specification 
The Markets in Financial Instruments Directive (MiFID) A specification containing MiFID, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "The Markets in Financial Instruments Directive (MiFID)" specification from the Solution Store
2) For each MiFID record:
* Review it, set the Reviewed custom field to "Yes". If it needs to be reviewed later, set it to "No"
* If you need to provide a report on the record, set the Record custom field to "Yes", if not "No".
* If the record needs to be included in your policies, controls and procedures, set the Internal Documentation custom field to "Yes", else "No".
2) Link relevant Policy, Control and Procedure records to each record.
3) Use filters and reporting to identify gaps
4) If there are people in the organization who need to be informed, but do not have access to RequirementONE, Export the completed document to Word.

The Markets in Financial Instruments Directive II (MiFID II) A specification containing MiFID II, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "The Markets in Financial Instruments Directive II (MiFID II)" specification from the Solution Store
2) Mark each record to show whether it is applicable to your organization.
3) Link each applicable record to the corresponding policy / control / procedure record
4) As the linked records are updated, mark the status of the work.
5) Use filters to identify work still to be done
6) If there are people in the organization who need to be informed, but do not have access to RequirementONE, Export the completed document to Word.
The Markets in Financial Instruments Regulation (MiFIR) A specification containing MiFIR, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "The Markets in Financial Instruments Regulation (MiFIR)" specification from the Solution Store
2) For each MiFIR record:
* Review it, set the Reviewed custom field to "Yes". If it needs to be reviewed later, set it to "No"
* If you need to provide a report on the record, set the Record custom field to "Yes", if not "No".
* If the record needs to be included in your policies, controls and procedures, set the Internal Documentation custom field to "Yes", else "No".
3) Link relevant Policy, Control and Procedure records to each record.
4) Use filters and reporting to identify gaps
The Markets in Financial Instruments Directive (MiFID) Implementing Measures A specification containing MiFID Implementing Measures, which can be used to ensure that all policies, controls and procedures are correct.

GET STARTED
1) Download the "The Markets in Financial Instruments Directive (MiFID) Implementing Measures" specification from the Solution Store
2) Mark each record to show whether it is applicable to your organization.
3) Link each applicable record to the corresponding policy / control / procedure record
4) As the linked records are updated, mark the status of the work.
5) Use filters to identify work still to be done
6) If there are people in the organization who need to be informed, but do not have access to RequirementONE, Export the completed document to Word.

 

Getting started

  1. Select an existing, or create a new project
  2. Click on the Solution Store, and select the MiFID Templates
  3. Once you have the templates, add your custom data and work through the plan.

Additional notes

Combine MiFID with other compliance frameworks to provide a holistic Compliance solution for your organization. 

Related links

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