MiFID II – What Does It Mean For Our Clients?
Lucy Rochford
Lucy Rochford

January 2018 sees the roll out of new regulation in the Markets in Financial Instruments Directive II (MiFID II) which will significantly change various aspects of how markets and investment firms are regulated, with the primary aim of increasing transparency. As always, we like to keep our clients informed of any changes that may affect them, and we expect to be communicating with you on a regular basis.

Over the coming weeks and months, clients may receive various communications requesting that you affirm, update or provide new information required in order to allow us report transactions correctly under these new regulations. In part this information will help form a “unique identifier” for you as client, which we then provide on any transaction you execute with us.

The Irish authorities have taken the decision to use a CONCAT code for individual investors and an LEI code for legal entities or structures.

MiFID II also introduces enhanced protection for investors. This is in the form of additional suitability assessment obligations. We will have an obligation to carry out suitability assessments on an annual basis and to issue our clients with a suitability report.  We will also have an obligation to issue a suitability assessment in respect of each transaction where advice has been provided.

Additional appropriateness obligations will also be placed on us, to identify the decision maker on accounts, and to establish whether the decision maker possesses the knowledge and experience of the financial instruments to facilitate investing. This may impact any client who has a limited or enduring power of attorney on their account and we will need to collect information for this person before 3rd January. We will be in contact where relevant, but if you have any queries please contact us in advance.

In summary MiFID II aims to improve the efficient and transparent operations of financial services providers. We encourage you to please read any letters or email communications you may receive over the coming weeks. We will ensure to help you through the process where relevant and to give you any further information you may need. If you feel your information should be updated now, please call us directly on 01 633 3888 or email Ireland@cantor.com with the details.

Frequently Asked Questions

What is MiFID II and when does it become effective?
MiFID II builds on regulation introduced in 2007 and seeks to make investing more transparent for both private or retail and institutional investors. It is the standard by which the Central Bank and other regulatory authorities measure investment firms such as Cantor Fitzgerald Ireland. MiFID II becomes effective on 3rd January 2018.

Does MiFID II impact you as our client?
Our services will not change significantly. There may be some changes to our Terms & Conditions and Rate Card to reflect additional transparency. These will be published on our website 10 days in advance of any changes coming into effect.

What is a CONCAT?
A CONCAT is a unique code for individual investors. It is comprised of the name, nationality and date of birth of the individual. This code will be aligned to all individuals holding a personal, pension, ARF or AMRF account.

Do you need to provide your CONCAT details to Cantor Fitzgerald?
No, in most cases Cantor Fitzgerald will derive the information based on your client file, or where necessary we will contact you directly for any information required to complete the identifier.

What is the Identifier or country code in the case where I am not Irish?
Country codes can be accessed via the ESMA website (European Securities and Markets Authority) by clicking here. If you believe you need to provide us with this detail, please contact your broker directly or our client services team on 01 633 3888.

What is an LEI code?
An LEI code is a unique 20 alpha-numeric code that identifies a legal entity or structure. These include corporates, trusts, intermediaries and corporate pension arrangements. Where relevant, you should already have received a letter requesting this detail. If not, please contact our Client Services team directly on 01 633 3888 or email LEI@cantor.com with your code.

How do you get an LEI code?
Full information on how to apply for an LEI code and a list of authorised issuers can be found on the Global Legal Entity Identifier Foundation (GLEIF) website at www.gleif.org. You must register with an authorised LEI issuer and provide the information requested. They will validate and confirm this information and then issue you with an LEI code.

What happens if you do not have a CONCAT or LEI by 3rd January?
We will be unable to process your investment instruction without this data. This means there will be a temporary block on your account until the information is received.

To speak with a Portfolio Manager or Account Executive, phone the Cantor Fitzgerald dealing desk on 01 633 3633.

Click here to download our November Investment Journal.