MiFID II and PRIIPS have been valid since January 2018. FIDLEG will come into effect in 2019. These directives provide more transparency for customers, but a great deal of effort for financial services providers. Automation helps to manage the variety of data and costs.
Customer Advisory Service in Accordance with MiFID II: More Data Analysis
Since January 3, 2018, banks and insurance companies have been working according to new EU directives: MiFID II and PRIIPS. The aim of MiFID II is better investor protection through increased transparency. The suitability check and adequacy check are being intensified, in addition to other increases in investor protection.
Information Sheet According to PRIIPS: More Documentation
Compliance with PRIIPS takes place with basic information sheets (Key Information Documents) for packaged investment products and insurance investment products. The aim of this is to inform customers sufficiently, so that they can make a well-founded investment decision.
FIDLEG: Time until 2019 – Based on MiFID Contents of the EU
In Switzerland, the Financial Services Act (FIDLEG or FinSA) is on its way to implementation in 2019. It contains rules of conduct, which financial service providers must comply with vis-à-vis their customers, envisages prospectus duties and requires a basic information sheet for financial instruments. In terms of content, it is based on MiFID and PRIIPS standards.
Costs Reduced through Automated Decisions
Banks and insurance companies are battling with the MiFID bureaucracy push. The German Banking Association quantifies the costs of the changeover at around EURO 1 billion. Since the beginning of 2018, financial service providers have been coming up with other business models, as they can no longer offer all customers every service and every financial product. One possibility for getting to grips with costs and transparency is the use of the ACTICO Rules Decision Management Software. As the name suggests, rules are defined, which make the decision as to whether a financial product/service can be offered to a customer and which documentation needs to be supplied, based on data.
Audit Security and Speed through Automated Decisions
- The rules are modeled on a graphic interface. This way, they are equally understandable for experts from the specialist departments, auditors and IT specialists.
- If the rules are defined, all of the decisions run automatically.
- If the rules need to be changed, this can be done at any time by the specialist department or IT department.
- Changes to rules are immediately valid.
Through the automation of decisions, financial companies increase their efficiency and drive forward automation. They interact with customers in real time, streamline their processes and reduce the costs of their operational decisions. There is no way around MiFID II for any financial institution. That is why it is particularly a security aspect, if decisions for investment advisory are automated. This way, they become traceable and are always available for auditing. ACTICO Decision Management documents every decision seamlessly. This way, it is also comprehensible, which factors have an influence on the individual decisions.