ESMA Updates Q&As on MiFID II and MiFIR Investor Protection & Intermediaries

ESMA has updated its questions and answers on the implementation of investor protection topics under the Markets in Financial Instruments Directive and Regulation.

On December 4th, the European Securities and Markets Authority (ESMA) published a press release stating that their Q&As on the topic of investor protection and intermediaries under MiFID II and MiFIR has been updated.

The updated Q&As include more detail on both costs and charges, as well as product intervention.

ESMA stated that the Q&A on product intervention ‘can assist firms in assessing which national product intervention measures apply in case of services provided on a cross border basis’. This will be particularly relevant to firms dealing with CFDs which are subject to a variety of national product intervention measures.

Along with its press release, ESMA provided a full list of the clarifications which are offered in the updated Q&As:

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; and
Other issues
Product governance
Product intervention

ESMA also states that the new Q&As on investor protection and intermediaries provide clarification on the following:

Information on costs and charges

Ex-post information in case of portfolio management
Relationship Article 50(9) and Article 60 of the Delegated Regulation in case of portfolio management

Product intervention

The application of national product intervention measures in case of services provided on a cross-border basis

LME Requests Six-Month Delay to Telephone Trading Compliance

LME Requests Six-Month Delay to Telephone Trading Compliance The London Metal Exchange (LME) has stated that it will take an extra six months to ensure that trades made via telephone are compliant with new transparency requirements implemented as part of MiFID...

MiFID II Unbundling Relief Period Extended to 2023 by SEC

MiFID II Unbundling Relief Period Extended to 2023 by SEC The US Securities and Exchange Commission has granted a three-year extension to the MiFID II relief period for American firms. The SEC will allow US brokers to continue bundling execution and research payments...

ESMA Launches Consultation Paper on Position Limits in Commodity Derivatives

ESMA Launches Consultation Paper on Position Limits and Position Management in Commodity Derivatives ESMA has launched a consultation paper intended to gather information on the ‘impact of position limits on liquidity, market abuse and orderly pricing and settlement...

Communication Recording and MiFID II: How To Stay Compliant

MiFID II Communication Reporting: Stay Compliant As part of MiFID II’s aim to generate greater market transparency, firms are now required to record all voice communications which result in a transaction being completed. These requirements extend to include trades...

FXCM selects Eflow and TZ to provide Market Abuse and Trade Surveillance Monitoring

FXCM selects Eflow and TZ to provide Market Abuse and Trade Surveillance Monitoring eflow today announced that Forex Capital Markets (FXCM), has selected eflow’s TZ Platform to provide a Market Abuse and Trade Surveillance. elfow has been providing regulatory...