Agenda item

Implementation of the Markets in Financial Instruments Derivative (MiFID II)

Minutes:

The Committee considered a report of the Corporate Director of Resources which outlined the impact of the implementation of the Markets in Financial Instrument Directive 2014/65 (MiFID II), and in particular the risk to the administering authority of becoming a retail client on 3 January 2018 (for copy see file of Minutes).

 

In discussing the proposals Councillors O Temple and C Carr acknowledged the need for the Council to opt up to ‘elective professional client’ status in order to continue to effectively implement the Pension Fund’s investment strategy.

 

Nick Orton advised that before the next meeting of the Committee Members would be asked to complete a self-assessment. This would enable Officers to carry out a gap analysis to identify training needs.

 

Resolved:

 

That the Committee:-

 

a)    Notes the potential impact on investment strategy of becoming a retail client with effect from 3 January 2018;

 

b)    agrees to the immediate commencement of applications for elected professional client status with all relevant institutions in order to ensure it can continue to implement an effective investment strategy;

 

c)    acknowledges that in electing for professional client status it agrees to forgo the protections available to retail clients attached as Appendix 1;

 

d)    grants delegated responsibility to the Corporate Director of Resources and the Pensions Manager for the purposes of completing the applications and determining the basis of the application as either full or single service;

 

e)    agrees that each Member complete a self-assessment to allow a gap analysis to be carried out for consideration at the December meeting of the Committee. 

 

Supporting documents: