What transparency obligations?
By Eric de Nexon, SGSS Head of Strategy for Market Infrastructures
Eric de Nexon spoke at a conference in Geneva on 6 December 2016. The event was organised by the independent information platform Friends of Funds. The theme was transparency obligations imposed by regulations on financial intermediaries in their customer relations.
This subject is particularly pertinent today, as we are now one year away from the entry into force of two major pieces of European regulation: MiFID II/MiFIR and PRIIPs.
These two texts use various measures to strengthen market security and investor protection, particularly for retail investors, by imposing greater transparency when investment services are provided, and for creating and documenting financial products.
The conference brought together finance specialists including auditors, lawyers and post-trade professionals. The main objective of the event was to remind participants of the content of these two sets of regulations. Other similar existing measures in Swiss law were also discussed. After this contextual refresher, discussions mainly pertained to difficulties encountered in interpreting and implementing some of the measures, both current and future. Participants also assessed the effectiveness of these measures from the standpoint of the intended objectives for protecting investors and from the perspective of the difficulties and costs associated with implementing the measures. Additionally, they talked about the extent to which Swiss stakeholders would be inclined to transpose these rules into their own regulatory framework and practices in order to align them with the European market.