Switzerland

MiFID Competence Center 

Markets in Financial Instruments Directive (MiFID) Competence Center


International transparency provisions and the European law also impact Swiss banks and other financial services providers. The Markets in Financial Instruments Directive largely defines the rules for Swiss firms within the very important EU financial services sector. FINMA is also dealing with MiFID topics, in particular within the areas regarding transparency of client information, operating fees and suitability of investment advice according to client profile.

Through its MiFID Competence Center, KPMG Switzerland supports Swiss banks and financial service providers during the evaluation and implementation of MiFID standards. The MiFID Competence Center puts KPMG in a position to take care of a financial institution’s needs by providing them with an interdisciplinary team of national and international technical specialists and offering comprehensive, customized solutions.

 

Which key areas does MiFID regulate?

  • Suitability and appropriateness of advisory services (i.e. “Suitability”)
  • Customer classification according to their investor protection needs
  • Appropriate and transparent client information and reporting
  • Dealing with conflicts of interest and incentive payments / bonuses
  • Best Execution of orders
  • Organization and maintenance of risk management and compliance functions
  • Eased provision of services within EEA markets (“passporting”)

 

In which ways is MiFID relevant for Switzerland?

Swiss financial service providers with a heavy focus on cross-border business within the EU are strongly affected by MiFID, especially within the private banking sector. Recently published FINMA analysis on the Madoff and Lehman cases signals a clear trend towards the assimilation of MiFID practices into Swiss supervisory practices. An increasing need to address MiFID is also dependent upon the client base as well as the business and operating model. Typically, financial institutions are confronted by MiFID in the following cases:

  • Expansion into the EEA region
  • Optimization of a cross-border operating model and consolidation of functions in Switzerland
  • Firm wide convergence of processes and compliance standards, on reduction of the compliance costs and implementation of synergies
  • As a guide for increased transparency and customer focused provision of services

 

An overview of our services:

  • MiFID “Quick-Scan” Assessment
    • Impact Analysis
    • Gap Analysis
    • Recommendation of action alternatives
    • Assessment of existing projects and implementations
  • MiFID Implementation
    • Modular implementation of selected MiFID focus areas
    • Support beginning with the technical conceptualization of detail specifications and directives through to concrete implementation and Change Management processes

Michael Schneebeli

Michael Schneebeli

Partner, Financial Services

+41 58 249 41 06

    Markets in Financial Instruments Directive & Regulation (MiFID I/II and MiFIR) - FSA Hearing Report

    teaser image
    Both a competitive advantage and a requirement for successful cross-border banking.

    Regulatory Services

    rollup regulatory services
    Recent economic developments have brought about significant changes, especially in the financial services sector.

    Understanding Regulation

    The call for increased market regulation has intensified since the start of the financial and economic crisis. But what is regulation, anyway?