From commissions to a closer relationship with the client
The expected ban on commissions will have a great impact on how business is run, and in countries such as Sweden we can already see many firms preparing for the new environment. Rather than earning kickbacks and commissions, the future is to get a closer relationship with the client. Examples of how this is done is by offering discretionary asset management, offering own funds, or becoming a custodian. FA can support your endeavors in all of these areas and still keep the new administrative tasks as easy to use as possible. This is done by setting up the FA platform with as much automation as possible, and integrating it with the leading third party service providers; related for instance to trading, settlement, rates and static data.
A setup of FA for discretionary asset management and fund management provides you with the benefits listed below, to name but a few:
Preparedness for MiFID II in the northern countries
Presented aspects are based on our discussions with over 100 decision makers in the financial industry, lawyers and compliance officers.
Sweden
On a general level Swedish banks and asset managers woke up early enough and they're starting to be ready for MiFID II.
Finland
Most of the banks and asset managers have started at least planning on how to face MiFID II but there's still work to do before the execution in Jan 2018.
Denmark
Especially the banks in Denmark have hired consultants to understand the scope of MiFID II and how they should start preparing for it. They still have a lot of work ahead before the execution of MiFID II in Jan 2018.
Norway
MiFID II will cover all of the EEA member countries including Norway, Iceland and Liechtenstein. It's still a bit unclear how they will react and operate in the tightening EU-regulatory environment.
How to approach MiFID II in a financial sales organization with us
Internal preparation
- Identify the right experts in your firm to take a view on the MiFID issues related to your operations.
- Assign a key person to create communication and form a common view on the issues across front, middle and back-office functions.
- Find a way to engage your internal working groups in other (MiFID and non-MiFID) workstreams.Gathering more information and training
- Get in touch with FA to register your interest in consultation and attending our sales and MiFID II related seminars.
- Prepare your employees for MiFID II and the changes that needs to be decided, e.g. how products and services are classified by risk.
- Define new methods of discussing issues and recommending global solutions across your offices and other firms.Project implementation
- Brief your senior management on the cost implications on the budget.
- Discuss with your product managers how they can help you.
- Are your firm’s products and services structured and defined as the directive requires? We'll help you with this.
- Establish a working group with us and conceptualize tangible examples of the outputs.And you're done!
- Note that the final deadline is January 2018.
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