A common trend is the increasing pressure on investment managers to comply with all legislation and regulation regarding their field of work. An example of this is the introduction of MiFID II (Markets in Financial Instruments Directive, the European investment guideline) in January of 2018. This will lead to increasing pressure on the business model of investment managers as it is a costly and time-consuming process to comply with all the regulations.

 

MiFID II

SCOPE is working with Hart Advocaten to ensure the KYC solution meets the stock-taking requirements set by MiFID I. The introduction of MiFID II does not change a lot regarding the collection of client data and is largely a clarification of MiFID I.

 

MiFID II Suitability report

There are some aspects within MiFID II which affect the SCOPE KYC Cloud solution, such as the suitability report. This is a written report about the given advice. In the suitability report the investment manager/adviser explains why the advice given is suitable for the client.

The SCOPE KYC Cloud solution stores the suitability report made by the investment manager as a component of the KYC stock-taking and the advice record of the client.

The MiFID II suitability report is planned to be expanded with the help of FinaMetrica.

The comprehensibility test

Another element of the MiFID regulations is the comprehensibility test. This means that the information or questions presented to a client need to be formatted clearly and be instantly comprehensible.

Within the SCOPE KYC Cloud solution this problem is solved by developing a user-interface which is very intuitive and user-friendly. Apart from that, the client is helped through additional assistance in the form of:

  1. An introductory screen with explanations of what the KYC processĀ entails, which steps are taken throughout the process and why the questions are asked.
  2. With every step of the KYC process an introductory explanation is given.

This assistance is given through pop-up screens containing additional information about the next step and the decisions which might need to be taken.