FSMA MiFID action plan
Regulatory radar newsflash
On 23 January 2012, the FSMA published its MiFID action plan for the years to come (click here for a Dutch and/or French version). The publication on the FSMA website was preceded by sector workshops last week during which the FSMA explained its supervisory approach and methodology in relation to MiFID conduct of business rules.
The MiFID action plan is of key importance for the FSMA as it fits within the core of its areas of responsibilities i.e. conduct of business supervision.
Parts of the action plan have been developed in cooperation with audit firms.
In summary, the action plan consists of the following components:
1. FSMA MiFID risk assessment exercise
The risk assessment will be based on information already available to the FSMA and on information that has to be provided or made available by financial institutions to the FSMA i.e. a set of basic MiFID documents (documentation list) and the institution’s cartography of MiFID investment services.
2. FSMA MiFID Audits:
To facilitate the audits, the FSMA has developed:
- An internal methodology; and
- A set of audit work programmes covering all MiFID topics: The work programmes (or equivalent programmes of the institution) will need to be performed by the financial institutions and the results of the audit work programmes have to be reported to the FSMA. The reporting will cover an assessment of both the design and effectiveness of the relevant procedures and controls; an overview of possible gaps and residual risk and mitigating measures.
The action plan will be rolled out gradually and taking into account the proportionality principle. Irrespective of the gradual approach:
- Actions need to be taken by the institutions before 1 March 2012; and
- The FSMA will already perform inspections (on site visits) in the first quarter of 2012.
Given the importance of the programme and the first deadlines, we are looking forward to discuss our insights in the action plan with you and any questions you might have in relation to next steps, concrete actions and how Deloitte can assist you in carrying out your MiFID review.