ESMA Updates MIFID/MIFIR Q&As
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
- 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.
This was the first time ESMA found breaches in confidentiality and integrity of EMIR data.
A briefing paper supports alignment of the clearing obligation under the EMIR and MiFID II.
The regulator published its final report on EMIR and SFTR data quality.
The agreement covers US derivatives clearing organizations recognized under EMIR.
By introducing a time limit, the EU is keeping some leverage over the UK.