This extensive EU directive and regulation package (that will be referred to as “MIFID 2”), is due to go live in January 2018. The ghost of mis-selling is attending this feast. The investors need to be assured that what they are buying is not tainted by that spectre. Across the industry there have been many discussions about how the communication of sales data from the distributors back to the manufacturers will happen. No doubt, a range of standardised messages and flows will become available.
Meanwhile, a recent industry briefing event held in London was sponsored by Idea Group, with the aim of widening is a lot clearer. The 2014 MIFID 2 Directive paper provided the key provisions. The October 2016 Product Governance consultation paper issued by the European Securities and Markets Authority (ESMA) provides much more granularity regarding what is expected of both manufacturers and distributors. And whilst still subject to alteration after the consultation period, this paper makes it clear that what will be required of a product management process is one that records in detail and can also report in detail on the full lifecycle of products affected by MIFID.