As the Novia spokesman says: “Advisers with client assets held on platform will not be able to trade in ETIs if they do not have an LEI.”
Mr Wilson comments: “Where an adviser doesn’t have discretionary powers, and is acting on behalf of a client, providers are likely to identify them as the adviser’s client.
“Where an adviser does hold discretionary powers in the same way as a DFM, Mifid II requires providers to identify them as the ‘decision maker’ in relation to the trading of ETIs, if they have elected to use those FCA permissions with those clients.”
Again, platforms can help with informing discretionary wealth managers and advisers.
According to Ms Lyons: “Advisers with discretionary permissions must make sure they have their decision-makers national identifiers available for their first ETI transaction on 3 January, otherwise they won’t be able to trade.
“Ascentric is making sure advisers know about these essential requirements in advance so there is minimal, if any, disruption to the advice process.”
Any advisers who do not already have an LEI can get one from the Stock Exchange – for an upfront £115 initial charge and an annual £70, not including VAT.
Which platforms are Mifid II ready?
Although implementation is just a matter of weeks away, Platforum has indicated some players are still not ready, which will have a knock-on effect on advisers using those platforms.
Ms Hopkins states: “The big players are on top of complying with Mifid II but some of the smaller players are pushing back on any support needed by DFMs.
“Some just do not have the resources to support the DFMs on this.”
However, according to Ms Hopkins, those platforms who are offering support to advisers in complying with Mifid II are “differentiating themselves”.
She comments: “We have heard good things about Transact, FundsNetwork and Nucleus in particular.”
As part of its Mifid II planning, Nucleus has teamed up with consultancy Zero Support (launched by Mr Young), to produce a series of action points and information for advisers ahead of the implementation date.
It has also come up with a list of 10 concise actions. These are:
1) Keep a register of conflicts of interest and review at least annually.
2) Review whether you need further qualifications, training or permission to maintain independent status.
3) Apply for new permissions by 2 January 2018 if you wish to advise on structured deposits.
4) Review your recruitment procedures and assess if they need tightening.
5) Look at your remuneration structure and ensure no incentives negatively impact clients.
6) Decide which staff the dealing-on-personal-account rule should apply to, and create a record of direct equities they hold.
7) Decide if you need to apply for a Legal Entity Identifier through the London Stock Exchange.
8) Establish whether your DFM or platform will offer online reporting access to avoid the need for paper reporting.
9) Understand whether your DFM or platform will issue the 10 per cent loss notification, and how.
10) Check your agency agreement with your DFM: where model portfolios are being used, how does the responsibility for regularly checking suitability sit with you as the adviser?
