Section 8

Question 1

Reporting channels and systems - trade report

Why, who, when, to whom?

Answer 1

MiFID post-trade transparency
Senior/selling firm
Automatic, < 3 mins
Exchange

Question 2

Reporting channels and systems - transaction report

Answer 2

Market surveillance
Both counterparties
By T + 1
To the regulator via approved reporting mechanisms

Question 3

Securities Finance Transaction Regulation (SFTR)

Answer 3

Requirements for transactions that use securities as collateral. Enhances transparency and regulators’ ability to monitor risk

Question 4

Requirement to confirm a transaction

Answer 4

• In a durable medium and
• Promptly and no later than the next business day
  Except:
  For MiFID business (none)
  For non-MiFID business (if requested by client)

Question 5

Trade confirmation information (11):

Answer 5

• The firm’s identification
• Name/Designation of the client
• Trading day and time
• Type of order
• Venue and instrument identification
• Buy/Sell indicator or the nature of the order if not buy/sell
• Quantity, price and total consideration
• Total commission and expenses, including mark-up or mark-down (if
relevant)
• Rate of exchange (if relevant)
• Client’s responsibilities for settlement
• Statement that the firm was the client’s counterparty (if relevant)

Question 6

Purpose of personal account dealing?

Answer 6

• Arrangements to prevent inappropriate dealings which:
  • Are prohibited under the Market Abuse Regulation
  • Involve misuse or disclosure of confidential client information
  • Conflict with the firm’s obligations to the client

Question 7

The arrangements of personal account dealing?

Answer 7

• Relevant persons are aware of the restrictions
• Relevant persons inform the firm
• Firm records all notifications, including a copy of the transaction confirmation

Question 8

The rule on personal account dealing does not apply to personal transactions in:

Answer 8

• Funds managed independently
• Shares in certain classes of fund
• Life policies

Question 9

Disapplication of personal account dealing rules

Answer 9

On the instruments where the rule on personal account dealing does not apply, it is believed that the staff are sufficiently removed from price sensitive information.

Question 10

What does periodic information include?

Answer 10

Client portfolio value and composition.

• Total fees and charges.
• Total dividends and interest.

Question 11

Timings

Answer 11

Periodic statements:
General rule - prepared every 3 months, sent out promptly, clients can ask for annual statements.
Derivatives - prepared monthly, sent out promptly.

Question 12

Periodic statement contents

Answer 12

The full list of prescribed information is:
• The name of the firm and retail client’s account
• The contents and valuation of the portfolio, including details of:
– Each designated investment held, its value
– The cash balance at the beginning and at the end of the reporting
period
– The performance of the portfolio during the reporting period
• The total amount of fees and charges incurred during the period
• A comparison of performance during the period covered by the statement
with the investment performance benchmark (if any) agreed between the
firm and the client
• The total amount of dividends, interest and other payments received
during the reporting period in relation to the client’s portfolio
• Information about other corporate actions giving rights in relation to
designated investments held in the portfolio

Question 13

Under what circumstances must a depreciation notice be provided?

Answer 13

When a client’s portfolio falls 10% or more since last valuation.