ESMA Recommendations to the European Commission MiFID Firms

All MiFID Firms Have a Full-Time Compliance Function--European Securities and Marketing Authority.

The European Securities and Markets Authority’s (ESMA’s) final advice to the European Commission, which may (if the European Commission concurs) be transposed into new rules under the revised and re-cast Markets in Financial Instruments Directive (MiFID II), recommends that all MiFID firms should be required to have a permanent compliance function. Such firms include investment advisory firms, asset managers and proprietary trading firms.

ESMA recommends that the “permanent compliance function” at such firms should:

monitor and assess on a regular basis the adequacy and effectiveness of the firm’s measures and procedures to comply with its obligations under MiFID II;

advise and assist the relevant persons responsible for carrying out investment services and activities to comply with the firm’s MiFID II obligations;

report, at least annually, to the management body on the implementation and effectiveness of the firm’s overall control environment for investment services and activities; and

monitor the operations of the complaints-handling process and consider complaints as a source of relevant information in the context of its general monitoring responsibilities.

In addition, the compliance function should:

have the necessary authority, resources, expertise and access to all relevant information;

be appointed and replaced by the firm’s management and be responsible for the compliance function and for any reporting required by MiFID II;

report on an ad hoc basis directly to the firm’s management whenever it has detected a significant risk of failure by the firm to comply with its MiFID II obligations;

not be involved in the performance of the firm’s investment services; and

be remunerated in such a way that they are not inappropriately incentivized in a manner that would compromise their objectivity.

Many of the new proposals appear to have been copied from the AIFMD (Alternative Investment Fund Managers Directive), and the ESMA guidance suggests that firms that can show that it would be disproportionate for them to have a dedicated compliance officer may be permitted to register someone from their administrative team as their permanent compliance function, effectively disapplying the final two bullet points above on the basis of their small scale and complexity—as is the case in practice for small AIFMs under AIFMD.

MiFID II takes effect in two years and there are likely to be many more developments and changes that investment advisory firms, asset managers and proprietary trading firms will need to address in their systems and controls. Firms are advised to keep a watchful eye on developments in MiFID II and be ready later this year or in early 2016 to put the necessary changes in place.

ESMA’s final advice to the European Commission is available here.

Job interviews are determined in the first few minutes

First impressions are really important. We all know that.

Researches suggest that the opening minutes of an interview can make or break your chances at landing the job. 

A famous set of studies established that the success of an employment interview hinges on what transpires in the first few minutes of the encounter, if both parties somehow establish some important common ground early on by noting, for example, that they share a hometown, an alma mater, or a common acquaintance, the chances that the interview will go well go up exponentially.

The reason this happens is because we are hardwired to use "like me" indicators when forming an opinion of a newcomer. The more similarities, the more we like them. This natural tendency is difficult to overcome, even in an interview setting when companies are looking for diversity. 

Without common ground, it's harder to relate to people, and creating a relationship is just as important in an interview as displaying your skills and expertise.

On an interview, you’re there to transmit all the great things about who you are, but you're also there to establish a relationship with the person with whom you’re talking to.

To nail those first few minutes of an interview, remember to be approachable, warm, and friendly in order to build a relationship. And if you have a commonality with your interviewer, play that card early on.

Lisbon – The new Berlin of IT startups

The EU crowned Lisbon "the most entrepreneurial region in Europe for 2015," and investors from Germany, the United Kingdom, and elsewhere are flocking to the city to capitalize on low rents and affordable IT talent.

Portugal's capital Lisbon has placed hope for economic recovery on its nascent tech scene - and the efforts appear to be paying off.

Cheap labor and sunny weather are attracting tech investors from around the world to the Portuguese capital - transforming the city into a European startup hub. But can Lisbon dethrone Berlin as the next IT boomtown?

Room to grow

Because up to 400,000 people have left Lisbon over the

last 20 years, there is a lot of room to grow a new tech 

business right in the city center.

Although the presence of shops and restaurants on the

ground floor of many buildings make Baixa, at the 

very center of Lisbon, seem busy - it's all dark at night. 

Unemployment as an advantage

New graduates from Portugal's technical universities have been

 prevented from finding jobs at large employers, like the national 

telecom energy utility as a result of the financial crisis. Therefore,

 is has been a great opportunity for investors of small new innovative

 companies to make connections with them.

New Berlin?

It sounds a lot like Berlin's tech scene a decade ago

 - only with better weather. And experts say that if the

boom continues, this will likely result will be an explosion

in real estate prices - just as has happened in Berlin.

Apparently investors from around the world are trying

to determine whether Lisbon's empty office buildings

and warehouses can provide a sound setting for their own

 tech startup ideas.

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Islamic Finance

Islamic Finance: Islamic finance covers all financial and legal techniques for the financing of goods or services in accordance with the requirements of the Charia. A board of compliance with Charia "validates the Islamic nature of a financial product or financial transaction". This advice is required from a financial institution claims to distribute Islamic financial products.

More info: http://www.greennettech.com/islamic-finance