Are you prepared for MifID II regulations?

New regulations require Financial Advisors to understand and serve client ESG preferences.

Learn how our solution empowers you to make the best financial choices for your clients with their needs in focus.

New MiFID II requirements went into effect across the EU on August 2, requiring Financial Advisors to assess and serve the sustainability preferences of every client.

Advisors must explain sustainable investment, gather their clients' sustainability preferences, deliver investment products that align with client preferences, and report on the portfolio's alignment.Advisors are left without solutions to fulfill these regulations. YourStake's MiFID solution makes tricky client value interactions simple, scalable, and impactful to help advisors deliver a compelling client experience in compliance with MiFID.

What is MiFID II?

MiFID II is a framework that is part of the European Union (EU) to improve protections to investors who want to invest in ESG themes. It's main focus is the standardize practices across the EU.

In August of 2022, a range of measures came into force of which the requirement of obtaining information and assess investment suitability on the basis of a client's preferences to invest sustainability. The MiFID ESG regulation outlines three categories of sustainability for investment products labeled as: Environmentally sustainable investments, Sustainable investments, and investments that consider sustainability factors.

Investors are now required to be asked by their financial advisor if they want their portfolios to have any of the factors listed above and how much of each. Then, the advisor must offer recommendations only of products that meet these preferences.

Guided by EU Frameworks

We built our sustainability preference questionnaire based on the EU's frameworks, and coverage across the three taxonomies so you can confidently stay in compliance with these new regulations.

Simple, repeatable processes for practices of all sizes

1. Education
Explain what "sustainability preferences" means for your client with simple and clear definitions without ESG jargon
2. Discovery
Determine if your client has sustainability preferences for their investments across key themes and capture risk tolerances.
3. Capture
Understand and record-keep your client's sustainability preferences including specifically:
Minimum portion of investments that contribute to environmental ovjectives as defined by EU Taxonomy
Minimum portion of investments in 'sustainable investments' as defined by SFDR
Which SFDR PAIs they want their investments to consider

Take action from sustainability preferences

4. Provide Recommendations
Discover and select financial products based on your clients sustainability preferences and risk profile
5. Report on investment changes
Showcase how sustainability preferences and risk are factored into the portfolio selection and see what impact is generated from the portfolio
Contact us to learn more


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