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TISA launches MiFID II compliant framework for Target Market Reporting and endorses the European Working Group’s European MiFID II Template

September 14, 2017

TISA, the investments and savings membership organisation, has today launched its framework for Target Market Reporting for financial instrument supply chains, in-line with MiFID II requirements. It has also endorsed the European MiFID II Template (EMT), as produced by the European Working Group.

MiFID II places new rules on the providers and distributers of financial instruments (e.g. structured deposits, securities and derivatives) in order that they must appropriately define their target audience for a specific product, and ensure that it is only delivered to that market. The Directive sets out obligations throughout the distribution chain to determine whether financial instruments are reaching the clients whose needs, characteristics and objectives are not considered compatible. Investment firms are required to take reasonable steps to ensure that the financial instruments are distributed to the identified target market and periodically review the identification of the target market of and the performance of the products they offer.

Significantly, under MiFID II there are requirements for product distributors to make available relevant information to product manufacturers which product manufacturers can use to help inform their ongoing product monitoring and review process – including the identification of “crucial events”.

Target Market Reporting Specification

TISA’s framework outlines how distributors should report back to product manufacturers in the context of the complex UK distribution chains. Key suggestions include a requirement for at least quarterly reports each report covering a one-month period. It states that the report should be delivered to the product manufacturer within a month from the end of the reporting period. TISA says the first report should be made available to the manufacturer by 30th April 2018.

Poppy Achilles, Project Manager at Vanguard Asset Management Ltd and Graham Taylor, Manager – Business Systems Analysis at Cofunds have led the working group at TISA. 

European MiFID II Template
TISA has also endorsed the European MiFID II Template, produced by the European Working Group which aims to standardise the data to be provided by fund groups to platforms and advisers, to help them deliver their client reports under MiFID II.
TISA has asked for clarification on aspects of the template which will be explored by Ghislain Perisse, Head of Insurance Business and Services Development, AXA IM ‘EMT’ at TISA’s seminar on MiFID II being held today.

Jeffrey Mushens, Technical Policy Director at TISA said:

“TISA is working hard to ensure that its members and the financial service industry is ready for MiFID II. We have developed a framework for Target Marketing Reporting which we hope will be a useful and a significant guide in preparing for new reporting requirements. Similarly, we are pleased to see the work that the European Working Group has produced on standardising data for client reporting.”

Ghislain Perisse, Head of Insurance Business and Services Development, AXA IM ‘EMT’ said:
“We are thrilled to have the support of TISA and its members for our European MiFID II Template. As we approach the deadline for compliance, we are working with firms and organisations like TISA to ensure that the transition on reporting is as smooth as possible.”

Moreover, TISA has produced a draft version of its ‘Implementation Guide for MiFID II Costs and Charges Disclosures – UK Investment Firms’. This Guide will help to assist MIFID II asset management and distribution firms in preparing for the implementation of MiFID II Costs and Charges provisions (effective from 3 January 2018).

Ends…

For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558/Email Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6550 / Email Sara.Neidle@newgatecomms.com
Jessica Hodson Walker- Telephone: 020 7680 6538/Email Jessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com

Notes for Editors

TISA is a unique, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence based proposals to government, policy makers and regulators.

TISA’s growing membership comprises 170 firms involved in the supply and distribution of savings and investment products and services. These members represent all sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, FinTech, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.

Current themes of TISA policy work include:
• Brexit: developing proposals for government that will enable the savings and investments sector to prosper on a global scale
• Digitalisation: a digital identity for consumers of financial services, innovation, standards and data responsibilities
• ISA’s: LISA, simplification of the regime
• Retirement saving: the Auto Enrolment review, self-employed and pension tax relief
• Housing: the use of property to supplement retirement income
• Guidance: developing a framework and services to make guidance more widely available
• Education: supporting the education of young people to make them aware of the impact of finance on their life.

TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve industry effectiveness by reducing cost and risk and to enhance customer outcomes. This work currently includes: MiFID II, CASS, the UK Fund Trading & Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.