ΠΕΡΙΓΡΑΦΗ

Investment information providers such as brokers, tied agents and other individuals providing services to clients on behalf of a Cyprus Investment Firm (CIF) must comply with the Circular C181 of the Cyprus Securities and Exchange Commission (CySEC). According to the said Circular, the investment information providers must be authorised by CySEC and have the specialised knowledge to provide information to clients regarding financial instruments, structured deposits, investment services or ancillary services.

The responsibilities and compliance obligations assigned to investment information providers have been greatly expanded, exacerbating the challenges they face in their professional roles. Further to ESMA’s publication of the paper ESMA/2015/1886 – Guidelines for the assessment of knowledge and competence (‘the Guidelines’), Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice or providing information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm possess the necessary knowledge and competence.

This course aims to provide knowledge and competence to staff providing investment information about financial instruments, structured deposits, investment services or ancillary services to clients. It will also provide a broad introduction to the financial services sector, through an in-depth coverage of the fundamental financial principles and products.

The content of this course applies to the new CySEC’s exam “Information Providers Certificate” that will be announced by CySEC shortly.

ΣΚΟΠΟΣ ΣΕΜΙΝΑΡΙΟΥ

Training Objectives 

According to the said Guidelines about competence of knowledge and competence, CIFs should ensure that their information providers should be able to:

• Understand the characteristics, risk and specificities of the financial instruments provided the firm;
• Understand the total amount of costs and charges incurred by the client in the context of transactions in financial instruments, or in the context of the provision of investment or ancillary services;
• Understand the characteristics and scope of investment or ancillary services;
• Understand how markets work and how they affect the value and pricing of financial instruments about which it provides information to clients;
• Understand the impact of economic aggregates, national/regional/global events on markets and the value of the financial instruments on which it provides information;
• Understand the difference between past returns and future performance scenarios, as well as the limits of forecasting future returns;
• Understands issues related to market abuse and money laundering;
• Evaluate data related to financial instruments for which it provides information to clients, such as Key Investor Information Documents, prospectuses, financial statements, or financial information;
• Understand specific market structures for the financial instruments for which it provides information on clients and, where appropriate, their trading venues or the existence of any secondary markets;
• Have a basic knowledge of valuation principles for the type of financial instruments in relation to which the information is provided;
• Understand/understand the rules of professional ethics

ΣΕ ΠΟΙΟΥΣ ΑΠΕΥΘΥΝΕΤΑΙ

The programme is suitable for all those professionals within the financial services sector who provide information to clients, and will include:

• Dealers
• Brokers
• Finance and Accounting staff
• IT officers
• Customer services staff
• Back-office staff
• Sales and Marketing staff
• HR People

ΠΕΡΙΣΣΟΤΕΡΕΣ ΠΛΗΡΟΦΟΡΙΕΣ

Training Outline

Framework Overview

• MiFID II framework, origins and legal background
• Key issues in MiFID II
• MiFID II implementation measures and challenges

ESMA General Guidelines

• The level and intensity of knowledge and competence expected for those providing investment advice
• Ensuring that staff providing relevant services possess the necessary knowledge and competence to meet relevant regulatory and legal requirements and business ethics standards
• Internal policies and procedures designed to ensure compliance with MiFID II
• Assess and review compliance with these guidelines

International Financial Markets

• Overview of the financial markets
• Type of instruments
• Currencies used and traded
• Geographical specificities
• Respective regulatory environment
• Activities in Financial Markets
• Participants in Financial Markets
• Future trends

Financial Instruments

• Debt instruments
• Equities
• Derivatives
• Investment Funds

Knowledge and competence for staff giving information about Investment Products, Investment Services or Ancillary Services

• The key characteristics, risk and features of investment products
• General tax implications and costs to be incurred by the client in the context of transactions
• Products characterised by higher levels of complexity
• The total amount of costs and charges to be incurred by the client in the context of transactions in an investment product, or investment services or ancillary services
• The characteristics and scope of investment services or ancillary services
• How financial markets function and how they affect the value and pricing of investment products
• The impact of economic figures, national/regional/global events on markets and on the value of investment products
• The difference between past performance and future performance scenarios
• The limits of predictive forecasting
• Issues relating to market abuse and anti-money laundering
• Assessing data relevant to the investment products
• Key Investor Information Documents, prospectuses, financial statements, financial datales
• Market structures for the investment products valuation principles

Knowledge and competence for staff giving investment advice 

• Providing advice with respect to products characterised by higher levels of complexity
• The total costs and charges to be incurred by the client in the context of the type of investment product being offered or recommended
• The costs related to the provision of the advice and any other related services being provided
• Obligations required by firms in relation the suitability requirements
• The fundamentals of managing a portfolio
• The implications of diversification regarding individual investment alternatives

Organisational Requirements for Assessment, Maintenance and Updating of Knowledge and Competence

• The responsibilities of staff
• A clear distinction in the description of responsibilities between the roles of giving advice and giving information
• Assessing staff qualifications and experience
• Carrying out internal and external reviews
• Assessing regulatory developments
• Collecting records concerning knowledge and competence of staff providing relevant services to clients
• Limitations on staff duties execution
• Staff members supervising other staff
• Tailored supervision
• Responsibilities of supervisors

Risk, Compliance and Regulations

• Product Governance
• Approval Process
• Investor Protection
• Market transparency
• Risk Management
• AML/CFT
• Market abuse

Compliance and reporting obligations

• Status of the guidelines
• Reporting requirements

Publication of information by Competent Authorities

• Publishing criteria and characteristics
• Publishing specific information
• Publishing sources as per the requirements