Inducements and Research

Since the implementation as part of MiFID II in 2018, the rules on Inducements and Research have been in some instances problematic with unintentional consequences for both buy and sell side firms. The arrival of BREXIT and with the end of transition period in sight, the FCA announced in the April 2021 consultation on changes “to the broad and deep structures of UK markets, underpinned by the highest regulatory standards that promote market integrity, effective competition and consumer protection.”

UK MiFID is proposing changes to existing inducement rules relating to research and broadening the list of non monetary benefits to include research on SMEs and research from independent research providers. This is a practical session for those working in sales, marketing, those involved in the production of financial promotions, compliance staff who are keen to increase their knowledge in this topic and understand what rules will remain and those which will change. It will give participants a chance to consider the impact and make firm related adjustments as required.

Key Learning Objectives:

• Understand the focus of the regulator with emphasis on managing potential conflicts
• Know the rules surrounding advice, client categorisation and how the regulator implements these rules
• Know and understand the revised definition of non-monetary benefits including the Consultation (CP21/9) of April 2021
• Understand the requirements for giving and receiving of research
• Understand the rules about RPAs and how to manage them
• Consider the impact on both buy side and sell side firms

09:30 Welcome and introductions

09:40 Inducements

• The focus on preventing conflicts of interest
• Adviser & Portfolio Management charges
• Independent and restricted advice
• Extension to professional clients
• How the FCA will implement the new rules
• What is now caught by rules
• Where it is not applied
• Minor non monetary benefits
• Gifts & hospitality
• Record keeping

10:15 Break

10:30 Research

• New regime
• Rationale behind the new rules and desired outcomes
• Detail of rules
• Absorbing costs versus RPA
• Conditions for using a RPA
• Research budgets
• Evaluating quality of research
• Investor communications and agreements
• Transparency
• How will FCA implement regime
• Impact on firms
• Impact on research providers
• FCA clarification and further developments

12:30 Close 

This training course is run under the Chatham House Rule, for reference please see here

Should be attend by anyone in sales, marketing, those involved in the production of financial promotions, compliance staff who are keen to increase their knowledge in this area, research analysts and staff support staff in research who need to understand the different charging methods for research post MiFID II implementation.

Gary Pitts, Associate Consultant/Trainer

Gary has been a compliance professional for over 27 years, having started his career at Lautro and the Personal Investment Authority and including spells at Threadneedle, Henderson (managing the N2 transition), Head of Compliance at hedge fund Brevan Howard and Head of Compliance Europe, Mid-East, Africa and
Japan for a boutique investment bank.

Since 2013 he has run his own regulatory and training consultancy, Tetractys, with operations in the UK and Ireland. Tetractys focuses the importance of governance as the essential driver of good compliance outcomes. He delivers open and bespoke training courses and external Board effectiveness assessments alongside his
consulting work. Gary has a particular interest in cyber security governance and the impact of digitisation on compliance and business processes.

Gary has held FCA controlled/senior manager functions since 2001, has been a director of regulated companies in the UK and South Africa and is also has been a Central Bank regulated person in Ireland. Gary is a Fellow of the Institute of Leadership and Management, Fellow of the Chartered Management
Institute and holds an MBA from the Open University Business School and Masters degrees from Oxford and London Universities.

He sits on the regulatory advisory board of the Journal of Securities Compliance has alsoheld a number of charity trusteeships.

IA Member £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

We will continue to monitor and follow government guidance regarding coronavirus (Covid-19) to ensure the safety of our team and our members. Please be advised some training courses could change from hybrid delivery (being held in-person and virtually) to solely virtual delivery, should government guidance require.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.