Baby PRIIPs KID
Now that the KID is here, we can help you take care of it!
Throughout the last months, we have prepared many PRIIPs KIDs, using our expertise to successfully launch them into the world. We now add experience to expertise and are happy to assist you in keeping your PRIIPs KIDs up-to-date and compliant, factoring in all aspects the PRIIPs family brings to the table.
Governance (MAR, BCBS)
Baby PRIIPs KID
Baby PRIIPs KID
With the rush toward digitalization in the past few years, the industry has faced an overhaul of IT systems, databases, and data warehouses. A database is an organized collection of data through several object types such as schemas, tables, queries, reports, and views. A solid and accessible database is today one of the most vital elements for any player aiming to keep up with the current regulation race and market innovation.
Since the mid-1990s, legislation that protects the information privacy of individuals in the European Union has been primarily based on EU Directive 95/46/EC—the Data Protection Directive that set out the minimum standards on data protection across Europe. In April 2016, the GDPR (General Data Protection Regulation) replaces local data protection laws in every country of the EU. The GDPR tightens privacy protections for individuals, meaning privacy rules will change and organizations that deal with information relating to individuals will need to adapt.
A distribution network is the interrelated system that allows interactions between manufacturers, distributors, and final clients. A fast, reliable, and ergonomic distribution network is essential to a successful and perennial business, as final clients must have both products and services at their disposal.
What happens when you make a trade through a platform or by phone? If you think your order is always filled right away, you might be mistaken. Indeed, an order can be filled in many ways, implying several time horizons. How and where your order is executed will affect the cost of your transaction and the overall price you will cash out. Consequently, authorities developed the concept of “best execution,” which forces financial intermediaries to report the quality of executions on a deal-by-deal basis.
An issuer/manufacturer develops and sells securities or financial instruments in order to finance and support its operations. Manufacturers may be of several types, including corporate, government, or fund. Trading enables manufacturers to optimize their needs by matching offer and demand (market participants) with a different level of liquidity according to each instrument issued. There are various ways to trade; some deals are being traded through specific platforms while other are being dealt over-the-counter.
MiFID categorizes clients according to their knowledge, skill, and expertise levels. Therefore, and in accordance with MiFID II, a retail client can be defined as “any natural or legal person to whom an investment firm provides investment or ancillary services” that is not a professional client. Requirements to be defined as a professional client are listed in the Annex II of the Directive 2014/65/EU.
Financial Instruments disclosure
“IFRS 7 Financial Instruments: Disclosures requires disclosure of information about the significance of financial instruments to an entity, and the nature and extent of risks arising from those financial instruments, both in qualitative and quantitative terms. Specific disclosures are required in relation to transferred financial assets and a number of other matters.”
Costs & charges
MiFID II re-prioritizes existing and additional requirements regarding cost and charge disclosure at both the service and product levels. Costs and charges are required to be aggregated in order to make it understandable for the client by showing an overall cost. In addition, the cumulative effect of all costs and charges on the investment’s return should be illustrated. Disclosure should be both ex-ante and ex-post.
The regulatory framework has been in perpetual evolution for the past decade, always looking for more and more accuracy regarding risk analytics. These analytics help the industry to perceive, anticipate, and mitigate their exposures. Their disclosures facilitate the communication to final clients through clear and standardized reports.