MiFID II: Product approval approach

MiFID II requires investment firms which manufacture financial instruments for sale to clients
to maintain, operate and review a process for the approval of each financial instrument and
significant adaptations of existing financial instruments before they are marketed or distributed to clients.

Investment firms are also required to assess whether the product is reaching the clients for whose needs,
characteristics and objectives it was not considered compatible.

Artemis’ product approval approach, outlined below, specifies an identified target market of end-clients
within the relevant category of clients for each financial instrument and ensures all relevant risks to the
identified target market are assessed.

Within three months of a new product being launched, the review process is started. Thereafter, a new
product will be reviewed on a six-monthly basis to ensure it is satisfying investor needs and meeting
regulatory requirements.

 

The full Artemis governance framework is available upon request; please contact us.