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Incorporating Sustainability
in the Advice Process:
How MiFID II Directive
Is Changing.

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Morningstar Solutions Supporting the MiFID II Directive

Morningstar® Data

Morningstar DirectSM

Portfolio Analytics Service

INVESTOR FOCUS

Sustainability Preferences Have Become Part of The Suitability Process

From 2 August 2022, a client’s sustainable preferences must be included in the suitability process. Morningstar can help you navigate these upcoming changes. The core MiFID II principles of investor protection, transparency, governance, and now sustainability, are fundamentals of our company mission. Let’s seize this new compliance opportunity to transform your business for the future.

MiFID II Guide :

Understanding Your Client’s Sustainability Preferences

Updates to MiFID II directive have brought significant changes to how firms and advisers deliver advice. In our guide, you’ll find out what exactly is required from a compliance perspective, and we share best practices for broaching the subject of sustainability with your clients.

TRANSPARENCY

Investors Will Need More Sustainable Data to Support This Advice

Asset management businesses needs market and sustainability data and reporting to ensure products are suitable for the investors they are being sold to, along with data outlining fee breakdowns.

Future of MiFID II & ESG Video series

RESEARCH

Company-Level Analysis Also
Needs ESG Research

Research costs are now unbundled from brokerage services under the MiFID II regulation. Our focus continues to be providing independent and objective research at Morningstar. We have broadened out our ESG Research offering at both Equity and Fund level to ensure alignment with regulation and increase value to our clients.



MODERNISE YOUR FIRM THROUGH THE MIFID II REGULATION

MiFID II has already put clients’ interest centre stage. The inclusion of sustainability in the suitability process expands on the transparency and further emphasises a client-focussed approach.

Anastasia Georgiou<br> Senior Product Manager, Adviser Products
Anastasia Georgiou
Senior Product Manager, Adviser Products


Get more out of MiFID II for your business

MiFID II regulatory requirements are an opportunity to get ahead of the competition, especially now that sustainability preferences are becoming a mandatory part of the advice process.These changes can help to standardise how you deliver advice, integrate new ESG data easily within your systems, realign your reporting process to efficiently deliver marketing and regulatory documents, and communicate your sustainability story to investors. Long term, these changes can help you position your firm as the first choice for investors.

You can also visit our EU Action Plan Resources Hub which contains more useful content relating to MiFID, EU regulations and the relevant solutions from Morningstar.

Need Help Complying with New MiFID II Changes?

We’ll share strategies to optimise your implementation of existing MiFID II requirements as well as the new sustainability preferences obligations, whether you need to rethink your firm’s advice process, acquire more ESG data, or find high-quality sustainability research

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