New compliance procedures for financial instruments

Tighter investor protection

Tighter investment protection controls for financial instruments when managing and treating your clients - and the products and services they can be offered and how they may be sold - mean you will need new internal and external procedures to remain compliant.

Talk to us today

A better match between financial products and client needs

Whether individuals, corporates or financial institutions, client assessment and treatment will need to be carefully planned, especially when providing advice on more complex or riskier instruments. 

From a product perspective, MiFID II investor protection rules demand that firms will need to regularly review the financial instruments offered to clients (whether your own or remarketed) to ensure that they are appropriate for the targeted market. 

Investing in compliance

To stay in compliance, firms will have to invest in better client assessment tools on one hand, and solutions that help them identify and classify their products on the other. 

Comprehensive and proven solutions

For MiFID I, Thomson Reuters currently provides comprehensive product and instrument reference data through DataScope, a strategic data delivery platform for non-streaming content. It is already being used to provide a comprehensive view over product categorization, identifying which of these fall under MiFID I and the specific instruments that must comply with the existing transparency regime.

Ahead of MiFID II, DataScope will be updated with new fields to identify:

  • Which new instruments and products fall under the broadened scope of MiFID II
  • Their classification using industry standards such as CFI Codes
  • Indicators for product complexity
  • MIFIR venue trading mandates and EMIR clearing mandates as they come into force.

Other attributes published by ESMA, such as liquidity status, thresholds and waiver status will also be available on a per instrument basis.

Much of this data will also be reflected in real-time data available through Elektron Real Time and on the Eikon desktop.

More about our solutions