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Status: You are viewing the version of the handbook as on 2019-01-03.

M2G 2.3 Main types of senior management and organisational requirements in MiFID II

M2G 2.3.1G

1MiFID II’s senior management and systems and controls requirements for firms fall into five broad categories:

  1. ● management body (article 9);

  2. ● general organisational requirements (article 16);

  3. ● conflicts of interest (article 23);

  4. ● remuneration and performance management of sales staff (article 24);

  5. ● whistleblowing (article 73).

Firms operating an MTF or an OTF are subject to additional systems and controls for algorithmic trading (see MAR 5 and 5A). Likewise, MAR 7A contains systems and controls requirements for other firms engaged in algorithmic trading or providing direct electronic access.

M2G 2.3.2G

1The general organisational requirements in article 16 are added to by detailed provisions in the MiFID Org Regulation including the following areas:

  1. ● compliance;

  2. ● risk management;

  3. ● internal audit;

  4. ● responsibility of senior management;

  5. ● complaints handling;

  6. ● remuneration policies and practices;

  7. ● personal transactions;

  8. ● outsourcing;

  9. ● conflicts of interest;

  10. ● record-keeping.