MiFID II remains a cornerstone of EU financial regulation, promoting investor protection, transparency, and sound product governance. As regulatory expectations continue to evolve, firms must be able to demonstrate that financial products are designed, distributed, and reviewed with the interests of their target clients firmly in mind.
The product governance framework integrates several interconnected components:
- Product Design and Approval
- Firms must establish a product approval process that assesses risk, complexity, and target market suitability.
- Identification of positive and negative target markets based on client objectives, experience and financial situation.
- Products should only be distributed through channels consistent with the identified target market.
- Periodic reassessment ensures products continue to meet the needs of the target market.
- Senior management and compliance officers must actively oversee the product governance process, ensuring accountability and regulatory compliance.
Understanding the Lamfalussy Process
To better understand MiFID II product governance requirements, professionals should also become familiar with the Lamfalussy Process, the framework that shaped the European Union's approach to developing and implementing financial-services regulation.
By understanding how legislation, technical standards, ESMA guidance, and regulatory oversight fit together, learners gain valuable insight into the regulatory foundations of MiFID II and the wider EU financial services framework.
The course provides an overview of:
- Level 1: EU Directives and Regulations, including MiFID II.
- Level 2: Delegated Acts and Regulatory Technical Standards (RTS) that provide detailed implementation requirements.
- Level 3: ESMA Guidelines that promote consistent supervisory practices across the EU.
- Level 4: Supervision and enforcement by regulators such as ESMA and CySEC.
Understanding how these four levels interact helps professionals navigate the broader regulatory framework underpinning MiFID II and its product governance requirements.
What is the “Understand MiFID II Product Governance and Investors Information” course and what does it include?
The course is delivered by Evdokia Pitsillidou, Global Chief Risk & Compliance Officer at SALVUS Funds. It is ideal for professionals working in Cyprus Investment Firms (CIFs), credit institutions, fund management companies, and compliance functions who wish to strengthen their understanding of MiFID II product governance and investor protection requirements.
By taking this course, participants will:
- Understand the core principles and regulatory expectations under MiFID II (including the MiFID II Product Governance regulatory requirements).
- Learn how to design and approve financial products in line with governance standards.
- Gain insights into target market definition and monitoring.
- Master the information disclosure requirements to investors.
- Develop best practices for aligning compliance, product development and distribution.
The syllabus of the course includes:
- The Lamfalussy process, the EU Commission & ESMA
- Lamfalussy process
- Level 1 & Framework Acts
- Level 2 & Delegated Acts
- Level 2 & Implementing Acts
- Level 3 & ESMA Guidelines
- Level 4 & Supervision of the member states by ESMA EU Legal Framework
- Investor Information and Marketing Restrictions
- Provisions of Law 87(I)/2017
- Pre-trade information
- Marketing of products and services
- Product Intervention
- Measures Costs & Charges Legal documents
- MiFID II Product Governance – Client categories & the Target Market
- Client Assessment & Categorisation
- MiFID II & Investment Protection
- Manufacturer & Target Market Identification
- Distributor & Target Market Identification
- Negative Target Market Identification
- Product Review
- Circular C603 & ESMA Guidelines on MiFID II product governance requirements
- ESMA Guidelines
- Guidelines for manufacturers
- Guidelines for distributors
- Guidelines applicable to both
- Practical Example: Product Governance Policy & Product Assessment Form
- Product Governance Committee
- Product Governance Policy – Indicative Structure
- Product Assessment Form – Practical Example
Product Governance Monitoring - Responsible function for monitoring
- Required information Monitoring procedure
- CySEC’s mission
- CySEC Investor Protection fine
Upon successful completion, participants receive a certificate awarding 5 CPD hours, recognised by CySEC, the Central Bank of Cyprus, and other professional supervisory bodies. The course contributes towards the annual CPD requirements of CySEC Advanced and Basic Certification holders, as well as professionals registered with ICPAC and the Cyprus Bar Association.
Get in touch
If you have any questions about Evdokia's course or any other questions related to your training requirements, please contact us; we would love to help. From all of us at IforPE, the Institute for Professional Excellence,
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