Six another professional who does. But that

Six months of experience and a minimum of 150 hours of training for advisors. These are some of the requirements that the CNMV will apply to avoid banking malpractice in the commercialization of financial products.The arrival of MiFID II and malpractice in the banking sector has meant that the CNMV has been putting the focus for years on the training of anyone who has anything to do with the sale of financial products.

The body has put to public consultation a guide on the training of personnel of financial institutions-credit, investment services and managers-that offers information and advice to clients on investment services.A guide that will be open to comments until May 10 and will be applied with the arrival of MiFID II in January 2018. Among the highlights, is the requirement to have a minimum experience of six months full-time to advise clients. If in spite of being a trained professional, does not have that time of experience, you can only perform the investment service under the tutelage of another professional who does. But that period can not exceed 4 years.According to the CNMV, the training must be 80 hours for the staff to report and 150 hours for the adviser.Notwithstanding the provisions of section Eight, the financial institution may, at its own risk, consider appropriate certificates or certificates other than those included in the list of qualifications published by the CNMV.The objective of the CNMV is for investors to understand the risks of the products in which they invest, for which it is necessary that those who offer them have the necessary knowledge to understand them and know how to explain them and to assess whether they are adequate or suitable for each client, which must be guaranteed by the entities that provide investment services.In the specific case of those who apply a service in the field of advice, financial institutions will ensure that the staff that advises on matters of investment has the knowledge and skills necessary for these 12 key points:Know the characteristics, risks and essential aspects of the investment products that are offered or recommended, including any general tax implications in which the client will incur in the context of the operations; Special attention will be paid when the advice refers to products characterized by higher levels of complexity.Know the total costs and expenses in which the client will incur in the context of the type of investment product that is offered or recommended and the costs related to the provision of advice and any other related service provided.Fulfill the obligations required by the companies in relation to the suitability requirements, including the obligations established in the ESMA Guidelines related to certain aspects of the suitability requirements of the MiFID.Know how the type of investment product offered by the company may not be suitable for the client, after having evaluated the relevant information provided by the client in relation to possible changes that may have occurred since the relevant information was collected.Understand the functioning of financial markets and how they affect the value and pricing of products offered or recommended to customers.Know the effect of economic figures and national, regional and global events in financial markets and the value of investment products offered or recommended to customers.Know the difference between scenarios of past performance and future performance, as well as the limits of forecast forecasts.Sufficient knowledge of the regulations and other aspects of interest of market abuse and money laundering.Evaluate data related to the type of investment products offered or recommended to clients, such as key information documents 5 for investors, information brochures, financial statements or financial data.Know the specific structures of the market for the type of investment products offered or recommended to customers and, where appropriate, their trading platforms or the existence of any secondary markets.Have basic knowledge about the valuation principles for the type of investment products offered or recommended to clients.Understand the basics of portfolio management, including the implications of diversification relative to individual investment alternatives.

Don't waste your time
on finding examples

We can write the essay sample you need

x

Hi!
I'm Owen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out