Countdown to MiFID II

Some of the biggest changes to the regulations are coming in at the beginning of 2018 - are you ready?

What do you need to know about the MiFID II changes?

MiFID II, or to give it its full name - the second Markets in Financial Instruments Directive, aims to:

  • make financial markets more efficient and resilient
  • improve transparency of both equity and non-equity markets
  • strengthen investor protection and reinforce supervisory powers

Key changes and actions required

You can find out more about the changes we're making to support MiFID in this section and in the Key Changes to our Platforms' document (PDF, 289KB).

As previously communicated, we recommend your business takes a small number of key actions to ensure you can continue to trade in Exchange Traded Instruments on our platforms with minimum disruption from 3rd Jan 2018. The action required depends on the regulatory status of your firm and the assets your clients are invested in:

Firms using Wrap or Elevate under advisory permissions only

  • All individual clients that are invested in Exchange Traded Instruments (ETIs) must confirm their nationality and provide appropriate National Identifiers in order to trade in ETIs, unless those assets are held via an International Bond. Where clients are UK nationals and have already provided a valid National Insurance number (NINO) there is no further action to take.
  • All individual trustees of trusts that are invested in Exchange Traded Instruments (ETIs) must confirm their nationality and provide appropriate National Identifiers (NIs) in order to trade in ETIs, unless those assets are held via an International Bond. Even where trustees are UK nationals it is unlikely that we have already gathered the NINO, therefore action is required to check and provide this.
  • All corporate clients invested in ETIs and corporate trustees of trusts invested in ETIs must provide the LEI of the entity as well as confirm the nationality and NIs of key investment decision makers within that entity, unless those assets are held via an International Bond.
  • This action is still required if your clients or trusts are invested in ETIs via discretionary portfolios on our platforms, unless those assets are held via the Wrap International Bond or an on-platform third party bond or pension provider on Elevate. Gathering this information is the responsibility of the discretionary manager where assets are held ‘off platform’ via Wrap SIPP.

New screens are being made available to capture this information on Wrap and Elevate from January 2018.

Firms using Wrap or Elevate under discretionary permissions

In addition to requesting the information above for individual clients and trustees, we are also seeking to obtain the LEIs for discretionary firms and the NIs for key decision makers within those firms.

Discretionary firms using Elevate or the Investment Hub on Wrap have already been contacted directly to obtain the relevant information.

Discretionary firms using Wrap only without the Hub will be able to input this information via the platform from January 2018. Further information about this process will be provided in due course.

If you have any questions about the information required for trading in ETIs, please speak to your usual Standard Life contact.

If you still have questions then please speak to your usual Standard Life contact, otherwise, contact us on 0345 272 6622, or email sales_support@standardlife.com. We’ll continue to update this page over the next few months to keep you up to date with the latest news and insight on MiFID II.