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Impacts des nouvelles réglementations sur les métiers du Private Banking

Gevolgen van de nieuwe regulering voor Private Banking

20 02 201721/02/2017 1

ProgramPresentations:

- Jean-Paul Servais, President of the FSMA

- Guillaume Prache, Directeur-général of Better Finance

- Michel Buysschaert, President of the Management Board of

Van Lanschot Bankiers

- Benoît Daenen, Head of Private Banking of Bank Degroof Petercam

Panel discussion / Q&A• Marc Lambrechts, financial journalist at L’Echo

Impacts des nouvellesréglementations sur les métiers du Private banking (MiFID II)

Jean-Paul SERVAIS, Président FSMAVice-président de l’IOSCO/OICV

Président de l’IFRS Monitoring BoardProfesseur à l’ULB

Belgian Finance Club, le 20 février 2017

1. Contexte (1)

• Leçons de la crise financière:Ø Produits financiers de plus en plus complexesØ MissellingØ Inducements

• Actions: Développement de nouveaux outils et denouvelles réglementations pour contribuer à unemeilleureprotectiondes consommateurs financiers

4MiFID I I20/02/2017

1. Context (1)

• Lessen uit de financiële crisis:Ø Steeds complexere financiëleproductenØ MissellingØ Inducements

• Actie: Ontwikkeling van nieuwe tools en nieuweregelgeving om bij te dragen tot een betere beschermingvan de financiële consument

5MiFID I I20/02/2017

1. Contexte (2)• En Belgique (trajectoire assurée avec succès, depuis 2011):

Ø Moratoire sur les produits structurés particulièrementcomplexes

Ø Interdiction de certains types de produits et formes decommercialisation (options binaires, life settlements, …)

Ø Inspections & mystery shoppingØ Nouveaux statutsØ …

• Au niveau européen: MiFID II, PRIIPS, IDD (Insurancedistribution directive)

6MiFID I I20/02/2017

1. Context (2)• In België (traject met succes afgelegd sinds 2011):

Ø Moratorium op bijzonder ingewikkelde gestructureerdeproducten

Ø Verbod op bepaalde types producten encommercialiseringswijzen (binaire opties, life settlements, …)

Ø Inspecties & mystery shoppingØ Nieuwe statutenØ …

• Op Europees niveau: MiFID II, PRIIPS, IDD (Insurancedistribution directive)

7MiFID I I20/02/2017

2. Les nouveautés prévues par MiFID II/MiFIR concernant les règles de conduite (en résumé)

8

gestion de portefeuilleconseil en investissement

exécution d’ordres portant sur des instruments complexes ou

consécutivement à une initiative de l'entreprise

exécutioninstruments non-complexes et

initiative du client

- portée de la notion de conseil

- conseil indépendant- inducements

- moins d'instruments financiers automatiquement non-complexes

suitability test

appropriate-ness test

execution-only

gouvernance (produit, rémunération), best execution, costs and charges, product intervention, conflits d’intérêts

MiFID I I20/02/2017

2.1. Gouvernance produits (1)• « Know your products »

Ø Définir une politique concernant les services, activités, produits,transactions offerts ou fournis, tenant compte descaractéristiques et besoins des clients cibles.

Ø Fabricants et distributeursØ Directive déléguéeØ Orientations attendues

• « Staff qualification »Ø Personnel avec les compétences, les connaissances et

l’expertise adéquatsØ Orientations sur l’évaluation des connaissances et des

compétences (22/03/16, ESMA/2016/1886 FR)

9MiFID I I20/02/2017

2.1. Gouvernance produits (2)Instaurer des

politiques et des dispositifs (y compris impliquer l’organe de

direction et la fonction de

compliance), documenter le

processus Comprendre et tester les produits, gérer les conflits

d’intérêts et identifier les besoins en matière de formation

Identifier le marché cible positif et négatif

Echanges d’informations

Approbation de chaque produit ou service

Suivre/revoir les produits et les canaux de distribution ainsi que les politiques et

dispositifs, entreprendre les actions nécessaires

MiFID I I 1020/02/2017

• Clarifier sur quelle base le conseil est fourni:Ø Conseil fourni sur une base indépendante ou pas?

Ø Conseil basé sur une analyse large ou limitée du marché ?

Ø Evaluation permanente du caractère adéquat des instrumentsrecommandés ?

• Conseil indépendant ?Ø Eventail suffisant d’instruments financiers disponibles sur le marché

Ø Ne se limite pas aux instruments émis par l’entrepriseelle-même ou des entreprises liées

Ø Pas d’incitations (inducements)

11

2.2. Conseil en investissement (1)

MiFID I I20/02/2017

• Rapport d’adéquationØ préciser comment le conseil fourni tient compte des

caractéristiques personnelles du client

Ø expliquer les raisons du conseil fourni

12

2.2. Conseil en investissement (2)

MiFID I I20/02/2017

• Renforcement de la protection des consommateurs enlimitant les types d’instruments financiers pouvant êtrecommercialisésen execution only

• Critères importants:Ø Liquidité de l’instrument financierØ Pas de dérivés ‘embedded’Ø Pas de structure qui fait en sorte que le client ne comprend

pas les risques liés au produit financier

13

2.3. Execution-only (1)

MiFID I I20/02/2017

• Versterking van de bescherming van de consument dooreen beperking van de types financiële instrumenten diein execution only gecommercialiseerdmogenworden

• Belangrijke criteria:Ø Liquiditeit van het financiële instrumentØ Geen ‘embedded’ afgeleide productenØ Geen structuur die ertoe leidt dat de cliënt de risico’s niet

begrijpt die verbonden zijn aan het financieel product

14


MiFID I I20/02/2017

• Seuls les OPCVM (UCITS) non structurés sont maintenantautomatiquement des instruments financiers noncomplexes (OPCVM (UCITS) structurés et OPC (nonUCITS) = instruments financiers complexes)

• Seules les obligations cotées sont maintenantautomatiquement des instruments financiers noncomplexes,à l’exclusion des obligationsqui :a) incorporent un instrument dérivé oub) présentent une structure qui rend la compréhension du

risque encouru difficile pour le client

15


MiFID I I20/02/2017

• Structure qui rend la compréhension du risque encourudifficile pour le client ? Orientations de l’ESMA sur lestitres de créance complexes et les dépôts structurés(04/02/16, ESMA/2016/1787 FR)

16


MiFID I I20/02/2017

• Interdiction des inducements dans le cadre de la gestion deportefeuille ou du conseil indépendant

• Pour les autres services : directive déléguée reprenant descritères précisant la portée du “enhancement test”

• Encadrement spécifique de la recherche en investissement :traditionnellement, la recherche est “reçue” en échange d’un flot

d’ordresè fin de cette pratique (critères spécifiques figurant dans ladirective déléguée)

• Encadrement plus étroit des rémunérations (définition d'unepolitique assurant un traitement équitable des clients et évitantles conflits d'intérêts)

17

2.4. Incitations et rémunérations

MiFID I I20/02/2017

• Transparence accrue concernant la “best execution policy” (e.a.communication des plateformes et entités, paiements reçus detiers, lier les frais aux services pertinents et utilisation d’entitésuniques)

• Les entreprises d’investissement communiquent le top cinq desplateformes sur lesquelles elles ont exécuté des ordres de clientsainsi que des informations sur la qualité de l’exécution

• Les plateformes d’exécution publient les informations relatives àla qualité de leur exécution (execution quality data)

18

2.5. Best execution

MiFID I I20/02/2017

• Grotere transparantie over de “best execution policy” (o.a.communicatie over de platformen en entiteiten, betalingenontvangen van derden, kosten in verband brengen met degeleverde diensten, …)

• De beleggingsondernemingen communiceren de top vijf van deplatformen waarop ze cliëntenorders hebben uitgevoerd alsookinformatie over de kwaliteit van de uitvoering

• De platformen publiceren informatie over de kwaliteit van hunuitvoering (execution quality data)

19

2.5. Best execution

MiFID I I20/02/2017

• Plus d’informations au sujet des coûts et fraisØ y compris l’effet cumulé des coûts et frais sur le retour sur

investissement

• Obligation de signer un contrat avec le clientØ y compris lorsque du conseil en investissement est fourni à

tout moment (on an on-going basis)

20

2.6. Informations relatives aux coûts et frais et au contrat avec le client

MiFID I I20/02/2017

• Meer informatie over kosten en lastenØ Ook over het gecumuleerd effect van kosten en lasten op het

rendement van de belegging

• Verplichting om een contract te tekenen met de client

Ø Ook wanneer doorlopend beleggingsadvies gegeven wordt(on an on-going basis)

21

2.6. Informatie over kosten en lasten en over het contract met de cliënt

MiFID I I20/02/2017

• Les informations fournies et les règles de conduite nesont pas toujours suffisantes

• « Product intervention» :Ø Interdire ou restreindre :

§ la commercialisation, la distribution ou la vente de certainsinstruments financiers ou d’instruments présentant certainescaractéristiques ou

§ certaines activités ou pratiques financières

Ø ESMA ou autorités compétentesØ Motivation et procédure

• Intervention ex-ante possible : anticiper les problèmes

22

2.7. Product intervention

MiFID I I20/02/2017

• De geleverde informatie en de gedragsregels zijn nietsteeds voldoende

• « Product intervention» :Ø Verbieden of beperken:

§ de commercialisering, de distritbutie of de verkoop van bepaaldefinanciële instrumenten of instrumenten die bepaalde kenmerkenvertonen

of§ bepaalde activiteiten of financiële praktijken

Ø ESMA of bevoegde autoriteitenØ Motivering en procedure

• Ex-ante interventie mogelijk : anticiperen op problemen

23

2.7. Product intervention

MiFID I I20/02/2017

• Régime renforcé• Nouveautés :

Ø Exigences générales supplémentaires concernant la prise fermeou le placement

Ø Exigences supplémentaires concernant la cotation des offresliées à l’émission d’instruments financiers

Ø Exigences supplémentaires concernant le placementØ Exigences supplémentaires concernant le conseil, la

distribution et le self-placementØ Exigences supplémentaires concernant les prêts ou la

fourniture de crédits dans le contexte de la prise ferme ou duplacement

24

2.8. Conflits d’intérêts

MiFID I I20/02/2017

Nouvelles exigences organisationnelles pour les entreprises quirecourent au trading algorithmique ou qui fournissent un accèsélectronique direct à une plateforme de négociationØ Systèmes et contrôles des risques efficaces et adaptés, plans de continuité

(objectifs : systèmes de négociation résilients, capacité suffisante, éviterl’envoi d’ordres erronés et les abus de marché)

Ø Tenue d’un registre des ordres (en cas de trading algorithmique à hautefréquence)

Ø Règles spécifiques pour la mise en oeuvre d’une stratégie de tenue de marchévia le trading algorithmique

Ø Mesures de surveillance des transactions réalisées via l’accès électroniquedirect

25

2.9. Trading algorithmique

MiFID I I20/02/2017

Conclusions

20/02/2017 MiFID I I 26

ImpactofthenewEUrulesonprivatebanking

Theindividualinvestorview

GuillaumePracheManagingDirectorofBetterFinance

27BelgianFinanceClubBrussels,20February2017

AlotofnewEUrulestoberolledoutsoon

• MiFIDII:1/1/2018

• PRIIPs(PackagedRetailinsurance-basedandinvestmentProducts):1/1/2018to31/12/2019

• IDD(InsuranceDistributionDirective):enteredintoforceon23February2016(thedeadlineforthetranspositionofthedirectiveison23February2018)

• ProspectusRegulation

• ShareholdersrightsIIDirective(article3c) 28

BelgianFinanceClub- Brussels,February2017

MiFIDII

• Independentand“nonindependent”advice:qualityimprovementtest

• Productgovernance

• Suitability/Appropriateness

• Productintervention

29


MiFIDIIIssues• Futureof“openarchitecture”distribution

• Fairandnotmisleading information:

o MiFID II : Section II “Provisions to ensure investor protection” , Article 24“General principles and information to clients”, Directive 2014/65/EU:

“3. All information, including marketing communications, addressed by theinvestment firm to clients or potential clients shall be fair, clearand not misleading. Marketing communications shall be clearlyidentifiable as such.”

Other rulesPRIIPs: SECTION II “Form and content of the key information document”, Article 6.1 Regulation(EU) No 1286/2014 « The key information document shall constitute pre-contractual information.It shall be accurate, fair, clear and notmisleading. It shall provide key information and shall beconsistent with any binding contractual documents, with the relevant parts of the offer documentsand with the terms and conditions of the PRIIP”.UCITs KIID: REGULATION (EU) No 583/2010 Article 3 “Principles regarding the key investorinformation document" , 2, "The key investor information shall be fair, clear and notmisleading”. 30


MIDIDII/PRIIPSissuesonproductinformation:exampleI(1/2)

31


MIDIDII/PRIIPSissuesonproductinformation:exampleI(2/2)

32

1.00

1.161.18

0.67

0.82 0.81

0.65

0.78

0.93 0.94

1.051.00

1.21

1.26

0.75

0.96 0.96

0.83

1.00

1.231.26

1.41

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CAC40"indexfund" CAC40GRindex


MIDIDII/PRIIPSissuesonproductinformation:exampleII

33


Source:EFAMA

Thankyouforyourattention!

34


Michel BuysschaertVan Lanschot Bankiers

Brussel, 20 februari 2017

Belgian Finance Club

Agenda

1. Introduction

2. Mifid

How does Van Lanschot prepare for Mifid II

3. Provisieverbod in Nederland

36

1. Introduction

The banking crisis has resulted in a profound impact affecting all financial institutions up till today (and for many years to come).

The impact can broadly be categorized in 3 pieces:

- Prudential - Regulatory - “Paying the bill”, i.e. increased indirect taxation through bank levies

37

1. Introduction: evolution bank levies

38

1. Introduction: overview regulatory work at Van Lanschot over last 5 yearsA) Last 5 years:

Wet Laruelle Wijzigingen aan consumentenkredietwetgeving

Transversaal KB Wet financial planners PSD I

Marktmisbruik EMIR

Kennisvereisten inzake kredietverlening Afwikkeling van kredietinstellingen

Fiscale regularisatie, ronde 3 & 4FATCA

SpeculatietaksWetgeving bankentaks

Single resolution fund RijkentaksCRS

ReynderstaksRoerende voorheffing

BeurstaksBeurstaks op buitenlandse verrichtingen

Rapportage Centraal Aanspreekpunt (CAP)Country by country reporting

Maatregel Michel beperking aftrekken voor bankenKaaimantaks

Rapportage betalingen belastingparadijzen

39

1. Introduction: overview regulatory work at Van Lanschot over last 5 years

B) Current:

üMifid II: 03/01/2018üPrivacy : 25/05/2018ü 4de witwasrichtlijn: 26/06/2017üPRIIP’s: 01/01/2018üNieuwe wet hypothecaire kredieten: 01/04/2017üPSD II: 13/01/2018

Projects become broader and with deeper impacts on the organisation (including increasing costs) and on the business models

40

2. Mifid: How does Van Lanschot prepare for MifidII

MiFID II: Impact op Van Lanschot Groep

42

Private Bank – high impact topics

Mogelijke strategische impact• Product governance (distributer)• (On)afhankelijk advies – Verbod op

retrocessies

Belangrijke impact• Transaction reporting• Investor protection (Transparantie naar de

klant dmv TCO, rapportages ed, geschiktheidsverklaring en –toets)

• Bewaren Cliëntinformatie

Asset Manager - high impact topics

Mogelijke strategische impact• Unbundling Research en provisieverbod• (On)afhankelijk beleggingsadvies

Belangrijke impact• Verhoogde bescherming van de belegger

(‘client’ ipv ‘retail client’), bijvoorbeeld door TCO en informatieverstrekking

• Product governance (manufacturer én distributer)

Merchant bank - high impact topics

Mogelijke strategische impact• Unbundling Research

Belangrijke impact• (Handelsverplichting via) trading venues• Product governance (SP-desk als

manufacturer)• Best execution• Transaction reporting

MiFID II - Projectstructuur

43

KenniscentrumJuridische Zaken en

Compliance

Besturing & Governance

Product Governance

Programma Management

Management Comité

Orderafhandeling/ Best Execution

Total Cost of Ownership

Geschiktheidstoets

Geschiktheidsverklaring

Beleggersbescherming Organisatie

Bewaren Cliëntcommunicatie Transaction Reporting

Rapportering aan cliënten

Vakbekwaamheid Beloning

Belangenconflicten

Markt

Vermogensscheiding

Provisies

(On)afhankelijk advies

Informatieverstrekking

MiFID II – impact dienstverlening private bank

44

Beheer Advies Execution Only

Geschiktheidstoets

Geschiktheidsverklaring

(On)afhankelijk advies

Bewaren cliënt informatie

Product Governance

Informatieverstrekking

Rapportages naar cliënten

Total costs of ownership (TCO)

Transaction reporting

Orderafhandeling

Ook organisatorische vereisten moeten worden ingeregeld, op het gebied van vermogensscheiding, vakbekwaamheid, belangenconflicten, besturing, governance, beloning en

reporting infringement.

3. Provisieverbod in Nederland

Doel: onderdeel van ruimer kader van herstel van vertrouwen in de financiële sector en diens producten → streven naar transparantie en onafhankelijkheid

• Provisieverbod sinds 01/01/2014 voor niet-professionele klanten en dit voor VB, advies en E.O. ØVoor 01/01/2014: lage (of geen) rechtstreekse kosten voor klanten want “onzichtbare opbrengst

achter de schermen”

ØNà 01/01/2014: stijging van de rechtstreekse kosten, maar transparantie en vergelijking

mogelijk

ØOp lange termijn: ??? (waarschijnlijk prijsdruk)

45

3. Provisieverbod in Nederland (vervolg)

• Gevolgen: + en –ØVerschuiving uit advies naar VB en E.O. Vooral de groei in E.O. was zeer fors

(20% + nog eens 20% intentie)

ØKlanten werden, waar mogelijk, geswitched naar (goedkopere) retrocessie-vrije share

classes van fondsen (echter niet altijd voorhanden of passend)

ØMeer gesloten architectuur

ØOpkomst mandaatfondsen: profielfondsen en managed fondsen

ØMeer passief beleggen: prikkel dure actieve producten te verkopen is weg

ØToekomst advisory

ØM&A: consolidatie

46

MiFID IIMiFID 2 – impacts overviewFebruary the 20th 2017

Benoit Daenen – Degroof Petercam

Main changes introduced by MiFID II / MiFIR4.

Product governance

Best execution

Ban on inducements (IA & PM)

Investment advice

Safeguarding of clients assets

Suitability / appropriateness

Information requirements on costs & charges

Reporting

Recording of telephone & electronic

communications

Product intervention

Increased equity market transparency

Sanctions

Topic What Who Types of services

Product Approval Process Target market definition and set-up of constraints within the systems to ensure that financial instruments are only sold to clients within the target market

Retail clients

Professional clients

Issuance and distribution of financial instruments

Obtain product information of reliable and adequate standards to ensure product is distributed in accordance with characteristics, objectives and needs of the target market

Use manufacturer’s target market information in determining their own target market and distribution strategy for a target market. This is without prejudice to appropriateness or suitability assessment

Firms which offer or recommend financial instruments they do not manufacture must also have in place appropriate governance arrangements, including ensuring that they understand the features of the products they distribute.

Product Approval Process

Product Approval Process : impacts

l IT issuel More controls ex-ante & ex-postl Perception of customers having less freedom/choice in their

investments

¦ IT / Controls


Best execution The execution policy must be provided in sufficient detail and in clear, easy to understand language.

Retail clients


Issuance and distribution of financial instruments

Investment firms must summarize and make public, for each class of financial instrument, the top five execution venues where they executed client orders in the preceding year.

. Firms should not receive any remuneration for routing clients’ orders to a particular trading or execution venue if this is not compliant with conflicts of interest and inducements rules.

Selection and payment of investment research from 1/3 parties and disclosure to the clients of the costs of the researches

Best Execution

Best execution : impacts

l IT issuel Does the customer really matters?

¦ IT issue


Inducement Ban on inducements for clients in discretionary management or independent advice

Inducements for clients in non independent advice or execution only are subject to enhancement of the quality of the services and disclosure to the clients

Retail clients


Eligible counterparties

Portfolio management

Independent advice

Non independent advice

Execution only

Detail of the retrocessions to be communicated to the customers: description and pricing supplied separately. Mode of calculation beforehand and the exact amount a posteriori. At least once a year, as long as the investment company receives incentives in connection with investment services supplied to the customers, it informs these individually about the real amount of payments or advantages received or paid.

Inducements

Inducements : impacts

l Competitors have to chose between non independent / independent advice

l Inducements are subject to enhancement of the quality of the service and disclosure to the clients

l More information about payments or advantages paid and received

¦ Business model will simplify¦ New equilibrium will be reached :

� Less services if customers disagree to pay (digital)� Price adjustments

Investment advice

Investment AdviceInvestment firms are required to inform their clients of:

•whether or not their advice is being provided on an independent basis;•whether the advice is based on a broad or more restricted analysis of different types of financial instruments and;•whether the investment firm provides the client with a periodic assessment of suitability.

Retail clients Investment advice (with agreement)

Ad-hoc investment advice

Investment firms providing independent advice will have to assess a sufficient range of financial instruments available on the market. The instruments should not be limited to financial instruments issues or provided by the investment firms themselves or by entities linked to them.

Ban on inducements in case of independant adviceBefore the transaction is made, provide the retail client with a statement in a durable medium including an outline of the advice given and how the recommendation is suitable for the client (or the day after if authorized by the agreement)


Investment advice : impacts

l Communication with customers will be a challengel IT l Contol ex-ante & ex-post

¦ Business model will simplify to deal with complexity


Investment profile Test the actual knowledge of the client (appropriateness & suitability test)

Define the “ability to bear losses” (suitability test)

Necessary knowledge & experience of the employees

Retail clients


Portfolio Management

Investment advice (with agreement)


Execution only

Alignment between natural and legal persons

Reporting obligations in respect of portfolio management are also applicable to professional clients.

Suitability & Appropriateness

Suitability & Appropriateness

Complex & Non Complex Financial Instruments

Define the complex and non complex financial instruments Retail clients Orders execution

Set-up of an appropriateness test

Recording of the appropriateness assessments


Suitability & Appropriateness : impacts

l In the continuity of MiFID Il IT l Contol ex-ante & ex-post

¦ Reduce cost of managing info gathered


Costs & charges Regular (at least annually) information (during the life of the investment) on all costs and associated charges (aggregated to understand the over-all cost and the cumulative effect: and with an itemized breakdown if requested), including:

• Charges related to investment and ancillary services• Cost of advice, where relevant• Cost of financial instruments recommended or marketed to the client• Method of payment• Details of any third-party payments

Retail clients



All

Information on all costs and associated charges must include information relating to both investment and ancillary services, including the cost of advice, where relevant, the cost of the financial instrument recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.Firms will to aggregate them in order to allow clients to understand the overall cost as well as the cumulative effect on return of the investment.

All

Costs & Charges

Cost & charges : impacts

l An new IT challenge

¦ New IT costs


Recording of telephone & electronic communication

Investment firms need to record:

1.relevant telephone conversations2.face-to-face meetings (summary report)3.electronic communications

relating to own account and clients transactions.

Clients must be notified that telephone conversations will be recorded. The records must be sufficient to establish the terms of any order placed by a client as well as to detect potential market abuse.

Such records will need to be provided to the client on request.

Retail clients



Investment advice (with convention)


Execution only



Records keeping Extended number of information to be reported to authorities (65 fields instead of 23)

Retail clients






Execution only

Record keeping of client orders and decision to deal

Record keeping of transactions and order processing

Investment firms should keep at least the records identified in the table of ESMA (see ESMA 2.5) depending upon the nature of their activities.


Reporting to clients The periodic report shall contain an updated statement of how the investment meets the client’s preferences, objectives and other characteristics of the retail client.

Retail clients






Execution only

Reporting obligations in respect of portfolio management are also applicable to professional clients.

Reporting obligations on losses in respect of portfolio management or contingent liability transactions.

ESMA recommends aligning the execution reports (content, timing) for professional and eligible counterparties with the ones for retail clients.

Reporting to clients


Recording… : impacts

l Formalize existing processesesl CRMl Controls

¦ Need to simplify to control risks!


Reporting to markets and supervisors

Reporting to competent authority or via ARM or trading platform: transmitter exemption (when orders are transmitted to another investment firm/broker).

Extended scope vs MiFID I of transactions to be reported:. Instruments admitted to trading on an MTF, OTF or RM. Financial instruments where the underlying instrument is traded on a trading venue

Extended number of information to be reported to authorities (65 fields instead of 23)

Retail clientsProfessional clientsEligible counterparties

Portfolio ManagementInvestment advice (with convention)Ad-hoc investment adviceExecution only

Transactions reporting to authorities


Safeguarding of clients assets: MiFID II Investment firms shall, when holding financial instruments and

money belonging to clients, make adequate arrangements so as to safeguard the ownership rights of clients, especially in the event of the investment firm’s insolvency, and to prevent the use of a client’s financial instruments on own account.

Retail clients






Execution only

Safeguarding of clients assets: SGD

La directive européenne sur les systèmes de garantie des dépôts (SGD) de 1994 a été révisée en 2014 et a fait l’objet de modifications substantielles. La directive n’a pas encore été totalement transposée en droit belge.

La directive nécessite des modifications supplémentaires au niveau des modalités pratiques d’octroi, de calcul et de paiement des indemnisations, de l’information du déposant et de la gestion des ressources financières.

Safeguarding of clients assets


Product intervention MiFIR gives EU and national regulators new powers to temporarily or permanently prohibit or restrict the marketing, distribution or sale of certain financial instruments and structured deposits, financial activities and practices in case of significant investor protection concern or a threat to financial stability or the orderly functioning and integrity of markets (and subject to a number of legal conditions to be fulfilled).

Retail clients




Investment advice (with agreement)


Execution only

MiFID II introduces a new market structure framework which closes loopholes and ensures that trading, wherever appropriate, takes place on regulated platforms and on a level playing field. In particular, MiFID II introduces two types of trading obligations for different financial instrument classes: •shares in the future have to be traded on a MiFID II multilateral venue or via a so-called systematic internaliser, except for a limited set of irregular or technical trades; and•derivatives which are eligible for clearing under the European Markets Infrastructure Regulation (EMIR) and pass a liquidity test have to be traded on one of the MiFID II multilateral venues only. This will move trading in these instruments onto well regulated platforms.

MiFID II introduces a new multilateral trading venue, the Organised Trading Facility (OTF), for non-equity instruments to trade on organised multilateral trading platforms.

Product intervention

Sanctions

The agreement strengthens the existing regime to ensure effective and harmonised administrative sanctions. The use of criminal sanctions is framed so as to ensure the cooperation between authorities and the transparency of sanctions.

Conclusions

l Overall simplification of the industryl Digital will help to reduce info maintenance costsl IT costs will increasel Price adjustments

Thank you.

Next conferences

• 24 April 2017 : « How to promote the Brussels financial place after the Brexit ? »

• 19 June 2017 : « The nationalisation of the financial system »

impacts des nouvelles réglementations sur les métiers du ... 20-02-2017.pdf · électronique...

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