MiFID II product governance rules: practical considerations for DCM practitioners
From 3 January 2018 MiFID II will introduce product governance obligations on investment firms established in the EEA when they manufacture or distribute financial instruments, including shares, bonds and derivative instruments.
This note considers aspects of the scope and implications of the product governance obligations for DCM practitioners. It also considers how MiFID firms can aim to comply with the product governance obligations in an “appropriate and proportionate” way when targeting “professional investors” only.
This note gives you an overview of the regime and highlights some of the issues that you may wish to think about now in order to comply with any applicable product governance obligations. However, we expect that market practice will continue to evolve over the coming months. In addition, MiFID II is a very extensive piece of legislation and the product governance regime is only a small part of it.
Read more on the full practical considerations for DCM practitioners.