ESMA Updates MIFID/MIFIR Q&As

Written by John D'Antona | Mar 26, 2018 12:28:24 PM

The European Securities and Markets Authority (ESMA) has included 7 new or updated items in its Questions and Answers (Q&A) document on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).

The updated Q&As are on the topics of inducements (research) and information on costs and charges. The other four Q&As are new and relate to the topics of inducements, post-sale reporting and other issues

The overall MiFID II Q&A provide clarifications on the following topics:

Best execution
Suitability and appropriateness
Recording of telephone conversations and electronic communications
Post-sale reporting
Record keeping
Investment advice on an independent basis
Inducements (research)
Information on charges and costs
Underwriting and placement of a financial instrument
Client categorisation
Inducements
Provision of investment services and activities by third country firms
Application of MiFID II after 3 January 2018, including issues of ‘late transposition’
Other issues

MiFID II applies from 3 January 2018 and will strengthen the protection of investors by both introducing new requirements and reinforcing existing ones. The purpose of this Q&A is to promote common supervisory approaches and practices in the application of MiFID II/MiFIR for investor protection topics.

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