Greg B Davies PhD

Suitability under MiFID II was featured recently in the FT Advisor


Author

Greg B Davies PhD

Date

10th November 2017


The FT Advisor ran a story on Suitability and the advice process under MiFID II yesterday.

The article outlined the requirement under the new directive of assessing suitability every time advice is provided, retaining a record of the report, and conducting an annual suitability review. It goes on to assert that MiFID II will also consider the increase of robo-advice. 

Essentially, MiFID II is being put into place to ensure due diligence is conducted correctly, provide better protection for investors, reduce the likelihood of a reoccurrence of the 2008 financial crisis, and stabilise the member states’ markets.

Click here to read the full article.

The problem many advisor firms face is achieving compliance by January 3rd 2018. In June 2017, FX-MM reported that 90% of firms were at either “medium or high risk” of not being compliant by the deadline.

Creating a suitability assessment, recording reports, and re-calibrating annually is no easy task; which is where Oxford Risk can help.

Non-compliance could incur penalties from the FCA, if you are concerned about this, we strongly urge you to explore Oxford Risk Rating Online (ORR Online). ORR Online is the industry-leading risk tolerance assessment platform that deals with suitability, appropriateness, and records the results of every assessment for future review. We also annually re-calibrate the suitability report as part of our standard offering.

ORR Online can be used by all forms of advisory firms, including individual IFAs, large international banks, and robo-advice platforms.

To discuss ORR Online, and become MiFID II compliant, please get in touch.

 

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