MiFID II Knowledge and Competency

With an increased focus on MiFID II requirements, firms with staff providing advice and information regarding financial instruments, investment services or ancillary services to clients must demonstrate minimum standards of knowledge and competence to fulfil their regulatory obligations.

MiFID II training at Redcliffe covers everything needed to meet these requirements and where we are in 2026. We delve into core components, the ESMA competency requirements and why they matter.

Firms must ensure team members have the necessary knowledge and competence to:

• A. Understand key characteristics, risks and features of investment products available through the firm. This includes any general tax implications and costs to be incurred by the client in the context of transactions. Particular care should be taken when giving information concerning products characterised by higher levels of complexity

• B. Understand the total amount of costs and charges to be incurred by the client in the context of transactions in an investment product, investment services or ancillary services.

• C. Understand the characteristics and scope of investment services or ancillary services.

• D. Understand how financial markets function and how they affect the value and pricing of investment products on which they provide information to clients.

• E . MiFID II training aids understanding of economic figures' impacts and national/regional/global events on markets and the value of investment products on which they provide information.

• F. Understand the difference between past and future performance scenarios alongside the limits of predictive forecasting.

• G. Determine issues relating to market abuse and anti-money laundering.

• H. Assess data relevant to investment products on which they provide information to clients, such as Key Investor Information Documents, prospectuses, financial statements, or financial data.

• I. Understand specific market structures for the investment products on which they provide information to clients and, where relevant, their trading venues or the existence of any secondary markets.

• J. During this MiFID II course, you will gain a basic knowledge of valuation principles for the type of investment products for which information is provided.

Financial Markets & Products

Delegates cover the following key areas, applicable to A, D, E & I listed above:

• The structure of financial markets

• Buyers and sellers

• Primary and secondary markets

• Key economic drivers of prices and value (macros and micro)

• Equities vs Debt

• Key features

• Risk profiles

• Tax implications

• Product pricing

• The Foreign Exchange Market

• Risk profiles

• Tax implications

• Product pricing

• Derivatives

• The role of derivatives in financial markets

• Pricing of forwards

• Futures, swaps and options

• Hedging vs investing

• Complex financial products

• Structured products

The Investment Process

This session investigates the following aspects, applicable to B, C, F, H & J as found above:

• The Fund Industry

• The structure and function of an Asset Manager

• Active vs passive management

• Ancillary services (fund administration, custody)

• The Investment Universe

• Governance

• Funds/instruments offered

• Client suitability

• Review and realignment

• Performance and Valuation

• Past vs future

• Simulated past

• Forecasting

• Appropriate warnings/client categorisations

• Assets under management

• Net asset value (or NAV)

• Client Documentation

• Key investor information documents

• Appropriate disclosure: what and when

• Prospectuses

• Financial statements

• Cost and Charges

• Management fees

• Performance fees

• Client transparency, research costs

• Tax implications

• Wrappers

Market Abuse

MiFID II training concludes with the following, applicable to G, found above:

• Definition of market abuse and regulation recap

• Key typologies

• Commonly adopted controls

• Relevant regulation

Training Objectives

• At Redcliffe Training, our MiFID II course ensures delegates leave with the knowledge and understanding of financial markets' key workings, products and risk characteristics

• Participants will apply the impact of macroeconomic events on the value of financial products

• By the end of this session, you will be fully versed in performance indicators

• This training reviews the current regulatory landscape to comprehend the key issues relating to market abuse and AML

• Delegates will be able to communicate with intention and authenticity

• Gain practical strategies for managing complexity and driving effective change-key themes explored

Training Course Summary

If your employees engage with clients about your products and services without providing formal advice, our MiFID II training courses are designed to meet their regulatory learning needs. Collectively, these employees are known as Information Givers and will include many of your support employees such as desk assistants, client support teams, research, sales, legal and even brokers/dealers in some organisations.

ESMA (European Securities & Markets Authority) has outlined Knowledge & Competence expectations that firms need to evidence competency against. Some employees may already hold suitable industry qualifications; however, what about everyone else? Firms are expected to annually assess their employees against the ESMA criteria. Anyone not assessed will need increased supervision until their competence has been demonstrated and evidenced. This course uses and refers to the ESMA mappings throughout.

This one-day training at Redcliffe is led by an expert with dedicated industry experience.