Skip to content

ESMA Gets Ahead and Publishes a Short Guide on MiFID II

On 30 June 2014, ESMA published a short guide aimed at retail investors.

The guide highlights nine reasons for retail investors to celebrate the upcoming MiFID II and MiFIR:

  • Strict limitation to the payments that firms receive when they provide an investment service: third party payments and benefits (inducements)
  • Independent investment advice, based on a broad or restricted analysis of financial products
  • Stricter controls on the products manufactured or sold: product governance
  • Safeguarding of client assets
  • New powers for regulators to ban products: product intervention
  • Changes to the type of information firms must supply before investment in a financial product or investment advice
  • More detailed information on costs and charges
  • Greater price transparency on a vast range of financial instruments
  • More products will be regulated – structured deposits

This early publication by ESMA is perhaps only symbolic, considering that MiFID II/ MiFIR is not due to apply before January 2017.

By then, a tremendous amount of work will be required from ESMA to put flesh on the bones of these promises. See our earlier blog post for an overview of the technical standards or advice to be developed by ESMA.

Contact Us