Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the Treasury Management Mid-Year Review report which was to be recommended to Council.

            Regulatory changes were coming into force in the near future with the main change being MiFID II (the second Markets in Financial Instruments Directive) which would come into force on 3^rd January 2018.  MiFID II required local authorities to be categorised by regulated financial services firms as retain clients by default who could “opt up” to be professional clients, providing that they met certain criteria.

The Council was classed as a professional client.  To “opt up” and continue its status the Council must hold an investment balance of at least £10m with the person authorised to make investment decisions having at least one year’s relevant experience.  Officers had considered the differing impacts of remaining a professional client or changing to a retail client and it was recommended that the Council maintained its current MiFID status of professional in order to continue to manage the Council’s daily treasury management activities as at present.

RESOLVED:

(a)       That the Treasury Management Mid-Year Report 2017/18 be approved and recommended to Council; and

(b)       That Council be recommended to approve the decision to “opt up” to professional client status by regulated financial services firms as a result of the second Markets in Financial Instruments Directive (MiFID II).