MiFID II – 6 signs that you’re doing great

It’s been over a year since MIFID II became EU law. Asset managers have been getting to grips with new requirements to perform distribution oversight and ensure that their funds are being sold to the correct target market audience. This process is often time and resource consuming, and comes with risks (operational, financial, non-compliance). So how efficient are you with ensuring compliance with MIFID II? Here are six signs that show you’re really on top of it.

1. You can see your distribution network at a glance

You can easily and instantly perform active oversight and assessment of your distribution network. You understand subscriptions and redemptions by distributor, and you can see down to the individual sales manager what transactions are associated to them, broken down by fund, by country, by sub-fund, by distributor.

2. Completing due diligence takes less than an hour

You have effectively automated your Due Diligence process. By doing so you are saving up to 90% the time spent on due diligence and you have gained a complete view of fund distributors’ network.

3. You easily ensure alignment with the target market and distribution agreement

You have a governance in place that requires your products to be reviewed proactively against the end-investor profile, to determine if the target market description is still appropriate. Your system automatically identifies and proactively warns you of any potential negative target market activity.

4. Foreign domiciled funds give you no extra hassle

Funds that are not domiciled in our local market do not cause you additional work. You can easily confirm that all your products are sold through the correct distribution channel to the right end-investors in all countries where the product is registered for sale.

5. You’re using MIFID II to your advantage

You have full transparency of consolidated transactions and holdings. This means that you not only have the foundation to be compliant with the MIFID II requirements on distribution oversight, but you can also facilitate superior sales and product reporting, and richer financial analytics.

6. You’re not worried about the auditors

Following MiFID II and CSSF 18/698, companies are now being audited on DDQ, but you’re not worried about it because 1) You know who your distributors are​. 2) You have an efficient system in place to complete your requirements with DDQ​. 3) You perform a risk-based approach assessment on your distributors​. 4) You receive back the Target Market suitability.