Jump to content
  • Julia Kirkland
    Julia Kirkland

    Sign in to follow this  

    Julia Kirkland, FSTP looks at Knowledge and Competence (K&C) in the light of MiFID II

      Time to read: 3min

    Guest blog from Julia Kirkland, Senior Partner at FSTP

    If you don’t know already, which of course you do, the Markets in Financial Instruments Directive (MiFID) is EU legislation which first came into effect in 2007. It was created to regulate firms providing services to their clients which are linked to ‘financial instruments’, these being shares, bonds, units in collective investment schemes and derivatives. In addition, it covers the venues where those ‘financial instruments’ are traded.

     

    Fast forward 10 years or so and we have an updated version – MiFID II. This includes the revised MiFID and a new Markets in Financial Instruments Regulation (MiFIR). January 3, 2018 is the day MiFID II must be implemented across Europe.

     

    Now we’re on the cusp of this deadline, the thorny and sensitive topic of Knowledge and Competence (K&C) is bubbling up as a major concern across the industry.  We’ve spoken with numerous firms in both the Asset Management and Wealth Management sectors and they have one thing in common; they’re all grappling with the assessment of competence of information providers.

     

    Who is in scope? 

    In Asset Management, this may cover a wide range of roles from sales teams, client services, broker servicing staff to Portfolio Managers (the really sensitive aspect of K&C). Managers may struggle with the fact they must tell a Portfolio Manager of 20 years plus who hasn’t got a formal qualification, they need to be assessed as competent and in a very short timeframe too.

     

    In Wealth, the scope may cover desk assistants, team secretaries and portfolio assistants who may all be in direct contact with clients, giving them information about prices, valuations, charges and providing generic market or sector views. Additionally, research teams who might attend meetings with clients to provide market, sector or stock views on a non-advised basis may fall under this too. Most of the firms we are speaking to are including research teams. Most of the above staff members have never been included in formal K&C Schemes before but this has changed.

     

    What happens in 2018?

    As it stands, information providers not assessed by January 3 will need to be supervised in their activities and oversight of any client interaction must be in place. If you’re not prepared, January 2018 is fast approaching and maybe it’s time to look outside your company for third party support and assistance.

     

    Our guest blogger Julia Kirkland, is Senior Partner, FSTP

    FSTP is a training solution provider with expertise in MiFID II and the company also runs workshops to cover Wealth and Asset Management to meet the ESMA requirements and provides advanced K&C assessments for more seasoned, professional staff.

    Edited by Andy Milner



    Sign in to follow this  

    Share this  

    Member Feedback



    Recommended Comments

    There are no comments to display.

    Become a member to read more and join the discussion

    Members can read and contribute to discussions

    Apply

    Register now for free access.

    Create your account

    Sign in

    Already a member? Sign in here.

    Sign In Now

  • Related Content

    • AlgoMe
      By AlgoMe
      INVITATION: OPPORTUNITIES AND THREATS FOR ASSET MANAGEMENT – A DISCUSSION AROUND FINTECH, SKILLS AND APPRENTICESHIPS

      FSTP LLP in partnership with AlgoMe invite you to a lunchtime round table discussion on the most pressing issues in today’s industry; digital skills shortage and the Apprenticeship Levy

      Date: Tuesday October 22
      Location: WeWork, 1 Fore Street Avenue, Moorgate, EC2Y 9DT
      Time: 12.15 for 12.30

      Introducing your hosts:
      FSTP LLP, a Main Provider for Apprenticeships offering Financial Services, Leadership and Management Apprenticeships, will be on hand to share insights and experience

      AlgoMe, the community for the Investment Management industry, connecting professionals from Asset Managers, Wealth Managers and FinTechs with their wider industry ecosystem will be on hand to discuss skills and transformation in the industry


      The event:
      12.30
      Your co-hosts Rob Carter and Andy Milner, AlgoMe will give an overview of demand for retraining and tech skills, based on the latest AlgoMe report; The Disrupted Career: FinTech, Innovation and The Future Of Careers In Investment Management Followed by Philippa Grocott and Nicola Spennati from FSTP LLP, will give an overview of opportunities for using the apprenticeship levy and how to do so effectively within the industry sector
      12.50 – 14.00
      Group discussion over lunch
      Key points for discussion:
      FinTech, Innovation and the growing digitisation of Asset Management mean technology skills are becoming more important to firms There is pressure in the industry from regulation and changing customer expectations in addition career paths are changing and becoming less predictable Automation and AI will make traditional roles redundant and up to 40% of the workforce will require retraining in the next 5-10 years There is over £3bn of unspent apprenticeship levy funds which are set to be returned to the Treasury if they remain unspent This money can be used to help meet these challenges by retraining existing staff, up-skilling new joiners and re-skilling returners after career breaks There are rules around how the levy can and can’t be spent Companies need to have in place an effective strategy to ensure that not only the rules are met so that the funds can be recovered, but that the needs of the individual and the wider business benefit are met
    • Jonathan Max
      By Jonathan Max
      I started at Lehman Brothers in 2005 in their HR team; they had been a client organisation of mine for a few years and was I extremely excited to be joining in the heady days of a raging bull market. While an industry contact had informed me of the potential role; there was the ‘standard’ interview process of seemingly meeting everyone. Did I really know what to expect or how to make the most of the opportunity? Not really is the honest answer.
       
      I learned how to progress my career as I went along; but, in truth was more focused on being accepted and delivering in what was a culturally unique organisation. I stayed at Lehman Brothers until it reached its dénouement in 2008. After the Lehman Brothers bankruptcy, I transferred to Nomura and was again part of a fascinating journey with many twists and turns along the way. The market was clearly in a very different place; the next years were a seemingly endless journey of organisational ‘Re’....Restructuring, Realignment, Repositioning, Reorganisation and so on. I left Nomura in 2017 and now reflect on what I wish someone had told me in 2005 about career development; so I have summarised as follows: 
       
      Find a mentor
      My approach here was somewhat ad-hoc. I had a great relationship with my line manager and then an organisation change resulted in a different reporting line. To placate some pre-existing hostility between my former and new line manager; the safest route was to form a ‘mentoring relationship’ with my previous manager so I could still benefit from his considerable insight and advice. I developed several mentoring relationships; both within and outside the companies. A couple were more formal, the others less so but equally valuable. They were people with different backgrounds and experience who could share information and provide guidance. 
       
      Sun Microsystems undertook a body of research around its own mentoring programme, which came up with some very compelling results Mentors were promoted six times more often than those not in the programme; mentees were promoted five times more often than those not in the programme. Having mentoring in your early career is obviously going to speed up progress, but according to the Harvard Business Review article on mentoring “Everyone we spoke with over age 40 could name a mentor in his or her professional life, but younger people often could not”.  Therefore, to get ahead of the game and progress your career you need to think carefully about how to develop the right mentoring relationships and do this early on. Or, put another way, when you can gain practical advice and learn from the experience of others; why would you not seek mentoring relationships?  
       
      Join Networking Groups
      I founded what was to become the largest employee driven network at Nomura; comprising over 750 people in the UK and beyond and holding several events every month. So why did I do this? Because I thought it would be a bit of fun and with the support of my manager and head of diversity something that would bring a bit of variety to me professionally and personally. 
       
      With this decision, I completely missed the significant benefit this would have on my career. I was able to find new ways to navigate the organisation and find the find answers I needed. I had ‘friendly’ contacts in many departments; if they couldn’t help me they would point me in the right direction. As my day-to-day work became complex and involved working across several different groups and businesses; I had the right contacts to make things easier. I’m not saying you need to form a group but being part of internal and external networking groups is absolutely essential to successful career development. This article; 10 Important Benefits of Networking is a very accurate overview of why this needs to be part of your game-plan.
       
      Leverage the appraisal process
      I don’t think I was in a group of one in my early approach to appraisals and performance management. Typically, following a number of automated reminders, I would complete the mid-year or year-end process with seconds to spare and that was that until the next reminder arrived in my inbox. Most of the completion time was spend on ‘refreshing’ myself on the objectives I had set and then trying to recall enough information to make a decent attempt at well considered response.
       
      My advice here is embrace the appraisal process to your advantage as I started to do after realising how I could benefit from a more structured approach; how you evidence your achievements is just as important as how you determine your goals and where to focus your skills. Contrary to popular myth, a sense of entitlement on how your career should progress doesn’t work! What is truer is that management talk and discuss people; so make sure you are in the group of people that gets discussed for the right reasons and opportunities will come your way. Even if the traditional annual performance appraisal process is giving way to more frequent conversations between a manager and subordinate; make sure you are ready to have discussions about your future.

      Know your Industry
      Earlier on in my career, I was too focused on my immediate environment and in trying to deliver day-to-day. Therefore, my perspectives were too internalised, and I wasn’t able to draw on external sources for new or alternative perspectives. I started to change this; attending industry events; reading and learning to increase my understating of the industry and how different elements knitted together.
       
      What I didn’t realise immediately, is that managers are having to demonstrate this very thing to their superiors and don’t necessarily have the bandwidth to get into all the detail. Making yourself a ‘go-to person’ for information enhances your personal brand and with that you get to get involved in more interesting projects and assignments and hence career development is a beneficial consequence.

      As Abraham Lincoln said, "The best way to predict the future is to create it.", that’s not something you can leave for someone else to do if you want to progress your career.
    • Andy Milner
      By Andy Milner
      An interesting read from TheCityUK, which highlights the lack of diversity and need for more FinTech skills as being key challenges across FS.
       
      Financial Services Skills Taskforce - Interim report | TheCityUK
      WWW.THECITYUK.COM  
    • Jonathan Max
      By Jonathan Max
      https://www.theia.org/sites/default/files/2019-06/PolicyPaper-June2019.pdf
       
      Really interesting Policy Paper from the IA which certainly highlights the fundamental changes underway across the industry, particularly against a backdrop of increased regulation and technology disruption.
       
      Clearly the 'people' aspect is key, would be great to find out more about the Talent and D&I Strategy @gillian.painter?
       
       
Debug
Debug info:
You may be asked to provide the below information to an AlgoMe administrator if you are facing any problems with the app:
appcms
modulepages
controllerpage
topics/forum ID15
page ID
PHP user agentCCBot/2.0 (https://commoncrawl.org/faq/)
ThemeAlgoMe v2.1.1a
Mobile appNO
Member ID
×

We use cookies to give you the best possible experience. If you continue, we’ll assume you are happy with this. For further information, see our Privacy Policy.