As the deadline for MiFID II draws ever closer (January 3rd, 2018), it is very important to have the relevant target market and cost transparency information available in an efficient manner.
10 Aug 2017
With regard to target market, it is important that the products in the investment portfolio closely match the specific wishes and characteristics of your client. On the one hand, it's essential that you qualify your client and more importantly, that you know the client. The European Securities and Markets Authority (ESMA) states that at least 6 criteria must be used: client type, client’s knowledge and experience, client financial situation, risk tolerance, client’s objectives and needs.
On the other hand, it's essential that you have the right data and information about the products you are considering including in your client's investment portfolio. With regard to the delivery of this product information by ISIN, we intend to provide this information for our clients who hold their funds through Global Fund Services. The joint information about your client and products enables you to make the right analysis to comply with the MIFID II directive.
With regard to cost transparency, you need to provide your clients:
• Ex-ante cost statement
• Ex-post cost statement
For both statements, you will need information about the products that are included in the investment portfolio. We will also disclose this information for the funds that you hold through Global Fund Services.
It is our objective to provide you as an asset manager and other investment firms with the building blocks that enable you to become MIFID II compliant. In this context, you will find in the attachment the MIFID II template with the different data fields you need for the analysis on the target market and cost transparency.
This template has been set up by the European Working Group (a European Lobby Group, which serves the interests of distributors and asset managers) and is aligned with the funds industry, including the European Fund and Asset Management Association (EFAMA ).
We intend to provide you with the data on each ISIN code for the template, provided that this information is available in our database of over 55,000 funds. This database is expanded daily with new funds. This service is part of our Global Fund Services (GFS) proposition and no extra costs are charged if you are already a GFS client.