Blacktower Financial Management (International) Limited - What Do Our Licences Allow Us To Do For You?


Insurance Distribution Directive (IDD)

There are normally two lines of Insurance that can be advised on via IDD; (1) General Insurance – things like Car/House Insurance etc and (2) Life Insurance – protection for Life; Critical Illness amongst other products. Also included under Life Insurance will be ‘Bonds’ also known as ‘Wrappers’ – these are contracts issued by Life Companies that hold ‘investments’.

Under IDD we have permission to recommend ‘Wrappers’ and provide Investment Advice on the underlying Portfolios.

Markets in Financial Instruments Directive (MIFID)

There are several layers of permissions here that can be applied for depending on the type business you are. MIFID covers the likes of Banks; Fund Management Companies to name a couple. As ‘Intermediaries’ we have a lower level of permission under MIFID which is restricted to providing Investment Advice on what is known as ‘Collectives’ – typically we will discuss with you building an investment portfolio using Collective Investments – Funds.

We therefore, under MIFID, can provide you with Investment Advice and receive/transmit your orders – without the Investment sitting within a ‘Wrapper’; so they are likely to be on a ‘Platform’ type basis (No Life Company involved and/or insurance contract).

Product Governance Committee

We are required to conduct ongoing due diligence on all the providers we work with to ensure that they remain suitable to our target market. We predominantly advise in the ‘Retail’ market – so will restrict our advice to ‘Retail Solutions’.


Advice on transferring a Defined Benefits Occupational Pension Scheme (or any UK based pension which has Guaranteed Benefits)

BFMI is not licenced to provide advice on the suitability of a transfer of a DB Scheme; following changes to UK Pension Legislation, advice for the suitability of such a transfer must be conducted by a UK FCA Pension Transfer Specialist. BFMI introduces clients to carefully selected Gold Standard (PFS Accredited) UK FCA Pension Transfer Specialists.

Advice relating to Malta Based Pensions/ROPS

The Maltese Authorities have made numerous changes to Pension Advice Legislation - From the 1st of July 2019 depending on whether you hold IDD / MIFID or both will determine what services you will be permitted to provide a client holding a Malta Based Pension.

As BFMI hold both IDD and MIFID – there will be no change for us; it is business as usual.


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