Asset Managers say MiFID will demand a risk-based approach to marketing communications

The Markets in Financial Instruments Directive (MiFID) will force asset managers to take a risk-based approach to communicating with customers according to members of the Financial Services Discussion Club.

[ClickPress, Thu Apr 12 2007] The Markets in Financial Instruments Directive (MiFID) will force asset managers to take a risk-based approach to communicating with customers according to members of the Financial Services Discussion Club.

Under MiFID, marketing and compliance teams in asset management firms will spend more time focussing on products and communications that present the greatest risk.

However, club members warned that it would not be until the regulator had set a precedent in this area, that the industry could create communications and launch new products with confidence. Establishing an audit trail for the development of new customer communications was seen as crucial by members if risks were to be managed.

The Financial Services Discussion Club for asset managers meets every month in London and is attended by representatives from the UK's leading asset management firms.

Mervyn Taylor from RSM Robson Rhodes LLP who chaired the meeting said,

"It will be important for firms to re-evaluate customer interactions under MiFID, look closely at their distribution channels, and how to assess each customer's appetite for risk and ensure effective and compliant communications.”

Richard Walbach from Clearconcepts which administrates the club said,

"With increased scrutiny in this area, and newly developing standards, discussion and benchmarking is becoming an essential tool for industry leaders."

NOTES FOR EDITORS

• The forum was held at Tower 42 in London on 5th March 2007
• The Financial Services Discussion Club is administered by Clearconcepts. It aims to provide a forum for the discussion of topical issues and exchange of ideas.
• For more information or to register for the Financial Services Discussion Club, contact Michelle Bridges - michelle.bridges@clearconcepts.co.uk 020 7405 0065

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