MIFID II & GDPR Update

MIFID II is the latest re-incarnation of European-wide legislation aimed at increasing transparency in markets and providing improved client protection. It becomes effective on January 3rd, 2018. The main areas in which clients will see a change in the way that they invest, and how Holden & Partners addresses these issues are as follows:

  • Record of conversations – whenever an adviser has a conversation with a client regarding their investments or financial planning strategy, a formal written record of that conversation will be made and the client will be provided with a copy.
  • Transaction reporting – financial planning firms will be required to make a report of all transactions made by clients that fall within the scope of the new legislation. To do this all investors will need a Legal Entity Identifier (LEI).
    For individuals, this will normally be a National Insurance Number (NINO). Where, for any reason, a NINO is not available, there are prescribed alternatives that can be used. Should it be necessary, Holden & Partners may contact clients regarding any further information that is needed to generate a personal LEI. Any clients who are not contacted may assume that no further information is needed.
    For trusts, companies, pension funds, charities, or unincorporated bodies, clients will need to obtain a LEI from the London Stock Exchange. Certain clients may have already received communication from a product provider, or obtained a LEI but, regardless, Holden & Partners will be contacting all clients individually to ensure that they such an identifier before January 2018 and to offer assistance to obtain it, should it be needed.

General Data Protection Regulations (GDPR) is a replacement for the Data Protection Act, which will become effective on May 25th 2018. Its purpose is to strengthen control over firms such as Holden & Partners who hold client personal data. Broadly speaking this means that:

  • Holden & Partners will require client consent to hold personal data in all circumstances, other than when there is a regulatory requirement for the firm to do so.
  • Clients will have the right to obtain copies of their personal data from Holden & Partners without charge.

Consequently, clients should expect to be contacted in early 2018 in order to obtain consent to hold their personal data.


Colin Sears
Compliance Manager