What is MiFID II?

Markets in Financial Instruments Directive II (MiFID II) is a European-wide legislative framework for regulating the operation of financial markets in the EU. It builds on the existing MiFID legislation and seeks to increase market transparency and investor protection, enhance governance and oversight, and align regulation across the EU.

When did MiFID II come into effect?

3rd January 2018

How will MiFID II Impact our clients?

MiFID II will not have a fundamental effect on you or how we do business. However, a key reason for the implementation of MiFID II is to increase client transparency of product provider, fund manager and financial planner costs. Therefore, over the year you may experience one or more of the following:-

  • If you are invested in the AMFA Active portfolios (Tatton), and the portfolio drops by 10% due to market fluctuations during a given period, you will be contacted by Tatton advising that this is the case. It is important to remember that your investments are for the long term. If this causes you a concern, then you need to consider whether investing is the right thing for you. In the event of this occurring and you decide to disinvest back to cash, then you may lose out in the long run on potential gains.
  • You currently receive half yearly valuations from your platform provider. This will increase to quarterly valuations
  • You already pay to receive an ongoing level of service from us. We contact you each year to ask if you would like a meeting to discuss your portfolio. However, going forward, if you decide not to have a review meeting, we still have an obligation to make sure that your portfolio is still suitable for you. This means that we will require certain data from you to make this assessment. Therefore, if you are unable to make the review meeting, we would appreciate your co-operation in providing the information that we need in order to conduct the suitability assessment.

Following this assessment you will receive a written report, confirming our conclusions and any further recommendations if appropriate.

  • You will see greater transparency in the charges that you are paying. You are already informed of how much you pay in our adviser charges, for ongoing advice and monitoring of your portfolio, and any platform charges you incur.  Going forward, you will also be informed of the underlying investment charges that you pay for your portfolio in £ and pence.

Remember, you pay your ongoing adviser fees to AMFA for the following services:-

  • You are offered an annual review meeting
  • We monitor your portfolios on an ongoing basis
  • We are available to answer your questions and concerns at any time

What is GDPR?

GDPR is the General Data Protection Regulation.  This is effective from 25th May 2018 and is the result of an EU Directive. The aim of the legislation is to make you aware of where your data is being stored and who has access to it.  You will have more rights on how your data is managed. This legislation affects all firms in the UK that hold personal data.

As a result of this, AMFA will be reviewing its current data protection disclosures and is undergoing a larger review on data security as a whole. This is likely to mean that you will be asked to read and sign a Data Retention Agreement at some point.

Further information on GDPR can be found on the Information Commissioner’s office (ICO) website.

What if I have more questions?

If you have any questions regarding this MiFID II or GDPR, please contact your adviser.