Regulation - Manentia Wealth Consulting : Manentia Wealth Consulting

Swiss Regulation

MWC Group is the trading name of Manentia Wealth Consulting Group AG, a Swiss company, and of its subsidiary Manentia Wealth Consulting Group Ltd, a Maltese company. The Swiss company is regulated in Switzerland by three regulatory bodies, namely FINMA, PolyReg, and OSFIN. Below is an overview of these regulatory bodies as well as links to our entries in their respective members registers as an authorised institution.

FinSA/FinIA (FIDLEG/FINIG)

From January 2020 the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) comes into force and most of the rules will apply after the two year transition period from January 2022. MWC Group’s various business units are subject to these provisions. FinSA in essence contains regulations on the provision of financial services and the offer of financial instruments and is intended to improve investor protection. FinSA’a content is closely based on the MiFiD II reforms in the EU.

Further details of FinSA is available on the FINMA website.

https://www.finma.ch/en/authorisation/fidleg-und-finig/

FINMA

Swiss Financial Market Supervisory Authority FINMA

www.finma.ch

FINMA is Switzerland’s independent financial-markets regulator. Its mandate is to supervise banks, insurance companies, exchanges, securities dealers, collective investment schemes, and their asset managers and fund management companies. It also regulates distributors and insurance intermediaries. It is charged with protecting creditors, investors, and policyholders. FINMA is responsible for ensuring that Switzerland’s financial markets function effectively.

As a registered ‘Insurance intermediary’ with FINMA, MWC Group can operate without being tied to any insurance company. This facilitates our independent ability to identify and recommend the best products available in the market through direct terms of business with providers.

MWC Group Entry in the FINMA register (no. 29575)

POLYREG

www.polyreg.ch

Persons or legal entities with legal domicile within Switzerland and acting as financial intermediaries have legal obligations to prevent money laundering and terrorist financing.

MWC Group, as a financial institution, is affiliated to PolyReg. PolyReg is a self-regulatory organisation (SRO) and acts as regulatory and supervising organisation for its members regarding anti-money laundering matters.

Link to PolyReg Membership confirmation

OSFIN

www.osfin.ch

In January 2020, new regulation came into force in Switzerland in the form of a comprehensive legal framework – Financial Services Act (FinSA) and the Financial Institutions Act (FinIA)- aimed at reinforcing client protection and promoting Switzerland’s competitiveness as a financial centre. It introduces a stringent set of rules for financial service providers providing their services in Switzerland or to Swiss based clients, with most of the obligations having phased-in timelines between 6 months and 2 years.

According to the new regulation, all portfolio managers, amongst other financial institution, must re-apply to FINMA and obtain their authorisation to continue their activities before the end of 2022; following authorisation, they will be supervised by a supervisory organisation, in MWC Group’s case this SO is OSFIN. MWC Group’s authorisation by FINMA is currently in progress and the company is authorised to continue its activities during the transition period ending 31^st December 2022.

Further details of FinSA are available here

Swiss Adviser Register

www.regservices.ch

Client advisers who provide financial services in Switzerland must be entered in a Client Adviser’s Register as required by Art.22 FinSA.

The entries of the advisers of MWC Group can be found here.

MWC Group is member of the following professional associations:

▪ Chartered Insurance Institute (CII)

▪ Swiss portfolio managers association (VSV/ASG)

▪ Swiss Registered Investment Adviser Association (SRIAA)

European Regulation

Manentia Wealth Consulting Group Limited (Reg. No. C 80087) is authorised and regulated by the Malta Financial Services Authority under the Investment Services Act (Cap. 370) to provide investment services and enrolled under the Insurance Distribution Act (Chapter 487) to act as an insurance brokers.

MiFID II

MiFID II is a regulatory framework enacted by the European Union which aims to bolster the European single market for investment services by harmonising standards and legislative requirements.

In this regard, the following are a few of the key objectives that MiFID II seeks to address:

1.Tighter Controls on the Financial Products that Reach You

MiFID II requires firms to determine that the financial products offered are client-specific, meaning that all relevant risks are assessed and understood before a product is distributed to you. This idea also applies when amendments to an existing financial product are made, hence making sure that the investor for whom it is meant for is taken into consideration, and that any risks associated with the product are adequate for those types of investor. In simpler terms, this framework should give you the ability to choose from a range of financial products which work in your interest and meet your investment requirements.

2.Improving Financial Markets Transparency on Costs and Charges

MiFID II improves transparency by requesting firms to disclose all the costs and charges incurred which relate to both the investment itself as well as any potential advisory costs. The rationale behind this is to provide you with a comprehensive and detailed breakdown on the costs that come part and parcel with financial products. This increased transparency should help you to better understand the nature and logic behind both a firm’s and a product’s charges, while also helping you to determine how much a firm charges relative to your investment returns.

3.Limitations on Third-Party Payments to Firms that Provide Investment Services

MiFID II limits the types of payments a firm can receive or pay when they provide investment services to you. In some circumstances, MiFID II imposes a complete ban on some firms receiving a payment or some other form of non-monetary benefits from third-parties. What this means for you is more confidence that the investment services provided are in fact acting with your best interest in mind, rather than for some other ulterior motive.

Every client that falls under MiFID II regulation, regardless of the client’s current or future residency will have peace of mind that their investments are well-secured under a comprehensive and robust EU wide regulatory framework.

MFSA

The Maltese Financial Services Authority (MFSA) is the single regulator of financial services in Malta. The MFSA regulates financial institutions.

As a member of EU, Malta is subject to EU regulations and in particular to MiFIDs rules implemented by the MFSA. The MiFIDs rules are focused on the protection of the investors and the strengthening of supervisory powers in order to establish a safer, sounder, more transparent and more responsible financial system.

The MFSA made public a Conduct of Business Rulebook in order to foster a more harmonised application of the MiFIDs requirements in Malta.

Through the Maltese entity, MWC Group offers its services into other EU countries through the passporting rights conferred by EU regulations. Additional details on passporting can be under the next tab.

EU Passporting

A direct result of the efforts made by the EU to promote and bolster the European single market is the introduction of a process known as ‘passporting’. Passporting allows for financial institutions registered in the European Economic Area (EEA) to provide services in other European jurisdictions without incurring additional regulatory burdens. Passporting rights can lead to increased efficiency in internal operations and client servicing as well as cost savings.

Passporting draws from the fundamental freedoms enshrined in primary EU law: the freedom of establishment and the freedom of services. Through the Maltese office, MWC Group is able to use passporting rights in order to enter the European Markets in an efficient manner, eliminating the process of having to obtain authorization from each country. When combined with our network of renown partners, we are able to provide financial advice in whichever EU jurisdiction our esteemed clients wish to target.

As of January 2022, MWC Group has passporting rights to the following countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, France, Germany, Ireland, Italy, The Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Slovenia, Romania and the UK (under Temporary Permission Regime “TPR”).

UK Temporary permissions Regime

Following the UK’s Brexit transition which came to an end at 11pm on 31 December 2020 the UK extended the passporting rights of EU companies into the UK through the Temporary Permissions Regime “TPR”. This ‘temporary permission’ allows MWC to continue to service its clients based in the UK and to carry on conducting its business in the UK. MWC Group is currently going through the process of being fully regulated by the FCA in the UK.

The FCA is a financial regulatory body in the United Kingdom and regulates the financial services industry. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers. The FCA works alongside the Prudential Regulation Authority (PRA) and the Financial Policy Committee to set regulatory requirements for the financial sector.

All regulated firms must comply with the FCA Handbook rules.

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