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Dr. Nektarios Michail has more than 8 years of experience in the financial services industry, having worked at the Central Bank of Cyprus, the Bank of Cyprus, as well as a Cyprus CIF and an investment fund. 
This course aims to describe and explain ESMA Guidelines for suitability and explains how to design questionnaires aiming at collecting information about clients for the purpose of a suitability assessment. If done incorrectly, financial institutions may face significant fines for regulatory breaches or reversal of trades. This is a key MiFID II requirement so that financial institutions only recommend investment services, financial instruments and investment-based products which are suitable for the client and in accordance with the clients risk tolerance and ability to bear losses. Learners may start, stop and resume their training at any time. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. He is also the author of a book titled Money, Credit, and Crises: Understanding the Modern Banking System, which has been published by Palgrave-MacMillan. In simple terms, suitability checks ensure that investment advice and decisions to trade (including to buy or to hold) are suitable for the investor. But opting out of some of these cookies may affect your browsing experience. To register to this course, click on theTake this coursebutton to pay online and receive your access instantly. 
As an example, many make the assumption that once they comply with MiFID, they comply with all EU markets in this regard. Muinmos Ranked Category Leader In Chartis CLM Solutions Report, The Suitability and Appropriateness of Boardgames, Using Automated Technology to Create a More Robust Risk Infrastructure, Correctly Categorising Clients is Key to Treating Customers Fairly. This is incorrect as the financial institution needs to defer to the status of the clients domicile. We also use third-party cookies that help us analyze and understand how you use this website. product provides financial institutions with a simple and fast way to ensure that Suitability and Appropriateness checks are done correctly at the onboarding stage and that clients are categorised correctly and are offered the correct products and services throughout their lifecycle with the firm, even if regulatory guidelines subsequently change. What is Suitability and Appropriateness? However, actual study time differs as each learner uses their own training pace. Eligibility criteria and CPD Units are verified directly by your association or other bodies in which you hold membership. It is important to get the information correct from the outset. These checks are essential in order to meet regulatory requirements and to protect both the financial institution and the clients. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 3. Regulators cam impose significant fines on financial institutions for miscategorising clients. If they arent aware, for example, of the specific guidelines for onboarding Slovakian clients, then they could easily and inadvertently breach the regulation, resulting in the need for a reversal of the transaction and/ or fines from the regulator. Registration confirmation will be emailed to you. These cookies will be stored in your browser only with your consent. Please enter your credentials below! While Retail Clients have the highest level of protection and are the main category protected by the Financial Ombudsman, there are a number of reasons why financial institutions (and the clients themselves) may wish to push the client up the chain to the next category, for example, to access additional products or services. We also use third-party cookies that help us analyze and understand how you use this website.
Through his experience, Nektarios has obtained a hands-on experience with real-life economics, with proven success in forecasting and macroeconomic analysis. Muinmos innovative mPASS product provides financial institutions with a simple and fast way to ensure that Suitability and Appropriateness checks are done correctly at the onboarding stage and that clients are categorised correctly and are offered the correct products and services throughout their lifecycle with the firm, even if regulatory guidelines subsequently change. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. This course is addressed to all individuals who are involved in Investment Firms such as: It is also suitable to professionals pursuing regulatory CPD for the renewal of the Basic and Advance CySEC Certificate or other relevant certificates in other jurisdictions. 1. He is currently employed by an Investment Fund while he is also an Adjunct Lecturer at the Cyprus University of Technology.
The cookies is used to store the user consent for the cookies in the category "Necessary". 5. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Talk to us for our special Corporate Group rates. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Examples of Elements that may affect the analysis of clients financial situation and investment objectives, Assessing the risk tolerance of clients through a questionnaire, Directors, Senior Managers, Compliance officers, head of departments of Investment firms and in general to employees of investment firms. These cookies do not store any personal information. This course explains and analyses ESMA Guidelines for suitability and explains how to design questionnaires aiming at collecting information about clients for the purpose of a suitability assessment. This website uses cookies to improve your experience while you navigate through the website. The course provides details of the required information to be collected for suitability assessment and how to assess clients risk tolerance. The course is offered fully online using a self-paced approach. This website uses cookies to improve your experience while you navigate through the website. But opting out of some of these cookies may affect your browsing experience. You also have the option to opt-out of these cookies. We'll assume you're ok with this, but you can opt-out if you wish.
The assessment as to whether to enable the client to trade a particular financial product or service in a given country will also be wrong, leaving the financial institution at risk of mis-selling. Doing these checks correctly may open up additional opportunities and secure more business and revenue for the financial institutions.
Appropriateness checks relate to when a financial institution provides services without advice, such as execution-only services, ensuring that the financial instrument being offered is appropriate for the investor. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. The learning units consist of power point presentations and case studies.
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2. If the categorisation is wrong, it has a huge impact on Suitability and Appropriateness checks, making the entire flow wrong.
At the end of each section, participants take a Quiz to complete their learning unit and earn a Certificate of Completion once all quizzes have been passed successfully. By clicking Accept, you consent to the use of ALL the cookies. The course can be accredited by regulators and other bodies for 2 CPD Units that require CPD training in financial regulation.
Where does categorisation fit in with this? It describes how to assess the risk tolerance of clients through a questionnaire, how risk tolerance affects the choice of investment products and how to match clients with suitable investments. Accessing this course requires a login. This category only includes cookies that ensures basic functionalities and security features of the website. Privacy Notice | Cookies Policy | Terms of Use | Instructor Terms, By becoming a User you explicit consent to receive our Newsletter and marketing information as per Paragraph 13 of our Privacy Policy. These cookies ensure basic functionalities and security features of the website, anonymously. Institute of Continuous Professional Training and Education, by GP Global | Jul 26, 2021 | Courses in English, Regulatory Compliance. He holds a PhD in Financial Economics from Cyprus University of Technology, and his research, covering variety of topics, has been published in several academic journals, as well as featured in the leading newspapers of Cyprus. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. In Europe, for example, there are three key categories: Retail Client, Elective Professional Client/Professional Client Per Se and Eligible Counterparty Opt-Up/ Eligible Counterparty Per Se. When providing investment advice or portfolio management, a financial institution must obtain information about the clients knowledge and experience in the investment field relevant to the specific type of financial instrument, investment product or service; their financial situation in their ability to bear losses and their investment objectives including their risk tolerance. These cookies will be stored in your browser only with your consent. This cookie is set by GDPR Cookie Consent plugin. It is mandatory to procure user consent prior to running these cookies on your website. All rights reserved. It does not store any personal data. Access to the course is valid for 60 days. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". It gives examples of elements that may affect the analysis of clients financial situation and investment objectives and explains how to appraise clients understanding of basic financial notions. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. These cookies track visitors across websites and collect information to provide customized ads.
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Analytical cookies are used to understand how visitors interact with the website. His experience has allowed him to obtain a full view of the industry, covering roles ranging from policy making to active participation in trading, investing and analysis. In explains how the extend of the service requested by the client impact the level of details of information collected form clients. Necessary cookies are absolutely essential for the website to function properly. You also have the option to opt-out of these cookies. Why are Suitability and Appropriateness checks important? The cookie is used to store the user consent for the cookies in the category "Performance". By becoming a User you explicit consent to receive our Newsletter and marketing information as per. Necessary cookies are absolutely essential for the website to function properly.
mPASS provides full product and services cross border clearances, with instant Suitability and Appropriateness checks. Miscategorisation can have significant implications - if clients complain that they were not 'screened' correctly at the onboarding stage and should have been categorised as Retail Clients, not Elective Professionals, for example, they can be entitled to reversal of their trades and their funds back. This website uses cookies to improve your experience. Financial Institutions have an obligation to categorise clients correctly from the outset in order to know which products and services to sell to them. If you wish to receive an invoice instead of paying online, pleaseContact us by email. This cookie is set by GDPR Cookie Consent plugin. Categorising clients correctly is highly complex and for this reason, many financial institutions inadvertently get it wrong. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. 5 Commonly Asked Questions About Suitability and Appropriateness. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The cookie is used to store the user consent for the cookies in the category "Other. Do clients have the right to complain if they believe they have been miscategorised? There is also a positive business case for Suitability and Appropriateness checks. The course is split into the following sections: This course may take up to 2 hours to be completed. If you are purchasing this course on behalf of others, please be advised that you will need to create or use their personal profile before finalizing your payment. The cookie is used to store the user consent for the cookies in the category "Analytics".