How is Particeep MIFID Compliant?

MIFID 2's mission is to protect investors, enhance transparency and standardize products.

This regulation inevitably leads to higher costs and requires greater clarity about the management and research fees paid by clients.

The impact of this regulation will therefore be felt on the distribution system of distribution financial services and products companies, which will use turnkey online financial product marketing solutions such as those offered by Particeep to quickly get started their compliance while limiting the costs of this digitization of their activities.

MIFID 2: what will change?

Before subscribing online on Particeep platforms, it is necessary to:

Collect customer data and documents,
To authenticate them online,
To verify the adequacy between the customer profile and the products offered.

With the MIFID 2 regulation, 3 essential points change in the context of customer relations and therefore their entry into digital platforms.

The information due to the customer is now more refined:
on the costs and charges that he will have to bear (the distinction between execution and research costs),
on simulations of product behavior according to the different market phases in order to offer a more analytical vision of the investment made in the product.
The establishment of a contract becomes mandatory including the collection of data and supporting documents in a secure environment:
the client must define his risk profile and his investment knowledge,
validation of the compliance of the customer profile and the information sent is now necessary.
it becomes essential to identify the potential customer target according to each product to ensure an optimal match between the product offered and the customer.

How does Particeep API stay compliant with MIFID 2?

Particeep offers white-label financial product marketing platforms and an API for creating online financial product and service subscription interfaces.

We ensure that our turnkey solutions meet regulatory requirements and bring extreme modularity to our API so that our customers can comply with their local regulations regardless of their geographic area.

How does Particeep respond to the 3 essential points of the MIFID 2 directive?

Information on costs and charges

Particeep offers, through its API and through its white-label platforms, a very advanced transaction, research and commission fee management system. In addition, these fees can be charged at the time of the transaction or over the life of the transaction.

All payment flows are categorized on Particeep platforms, thus making it possible to distinguish between transaction fees and commission fees charged if the marketing is done through a wealth management advisor, for example.

The customer, therefore, has a clear vision of the fees that are deducted from him over the life of the operation, whether for a direct subscription or for a subscription via a distributor account on Particeep.

Product information

Particeep offers the possibility of modeling a financial product or service on its white label solutions. This modeling incorporates the possibility, via an analytical calculation module developed in-house, to offer the customer simulations of changes in the price of the product that can take into account product parameters, the market or even the customer's profile.

Establishment of a mandatory contract

Particeep offers a completely modular customer knowledge path. This customer knowledge journey collects the data and documents necessary for customer profiling and their investment knowledge. At the end of this information collection, the customer signs a customer knowledge document or contract online to certify the authenticity of the information communicated.

This information is then sent to the administrator back office and can be sent via our API to any third-party KYC customer system for validation by the administrator of the customer profile platform in order to access the products.

The adequacy between the customer profile and the products offered

Particeep through its API and its white-label platforms offers a customer profiling module linked to the products offered on the platform.

Administrators can therefore easily define their management rules and their customer profile and product suitability according to their internal policy.

How does it work in practice?

The process works in several phases:

The administrator defines the profiling rules and the visibility of the products relating to each type of profile,
The customer registers and realizes his customer knowledge,
The customer is assigned a score,
The administrator verifies the compliance of the KYC contract,
The client can only invest in products related to his profile.

For any questions, contact our sales team by phone at +33 1 79 75 66 63