Agenda item

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

Report of the Chamberlain.


The Board received a report of the Chamberlain which asked Members to agree that elections to profession client status should be made on behalf of the authority.


The Chairman explained that in order to continue to effectively implement the City Corporation’s investment strategy after 3 January 2018, applications for election to be treated as professional clients should be submitted to all financial institutions with whom the City Corporation has an existing or potential relationship with, in relation to the investment of the pension fund and the treasury management function.


The Board agreed that the Chamberlain should be granted the necessary delegation to make applications on the City Corporation’s behalf and to determine the nature of the application on either full or single service basis.


The Chamberlain explained that a training programme would be rolled out to Members of the Board which could include self-assessment elements and other needs-based training.


In response to a Member’s question, the Chamberlain confirmed that if in the future, Members of the Court were interested in joining the Financial Investment Board, those who had not received relevant training would still be eligible to join the Board. The Chamberlain further explained that the Board was comprised of highly qualified finance professionals and the Chamberlain’s Department would, if necessary contact Members regarding their biographies to send as part of the application.


RESOLVED – That the Board:


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

b)    agree 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)    note that in electing for professional client status the Board acknowledges and agrees to forgo the protections available to retail clients as at appendix one in the report before Members;

d)    note that a training programme will need to be formalised to better evidence and expertise, experience and knowledge of the Board as set out in paragraph nine of the report before Members and a further report would follow in due course;

e)    agree to delegate responsibility to the Chamberlain for the purposes of completing the applications and determining the basis of the application as either full or single service.

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