ESMA Releases Final MiFID II Q&A ahead of the Deadline


While we count days till the end of 2017, ESMA Releases Final MiFID II Q&A ahead of the Deadline. What is included in the latest set of Q&A? How will the new regulations affect the market?

19 December, AtoZForex Let the MiFID II countdown begin – the new set of financial services regulations is just some weeks away! On the 3rd of January, European financial market participants will have the new regulatory framework to abide by.

ESMA MiFID II Q&A Purpose

While MiFID II is nearly two weeks away from coming into force, the European Securities and Markets Authority (ESMA) decided to clarify some of the points of the upcoming regulations to the industry participants. Via its latest set of Q&A, the ESMA aims to reconcile the reporting and regulatory requirements for financial venues across the EU.

The latest document released by the ESMA covers ten new responses that are looking into clarifying the relevant topic associated with MiFID II and MiFIR.  The overall scope of the ESMA MiFID II Q&A covers 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; and
  • Application of MiFID II after 3 January 2018, including issues of late transposition.

The primary European financial markets regulator states that with the help of the Q&A, it aims to promote common supervisory approaches and practices in regards to the application of MiFID II/ MiFIR for investor protection topics.

ESMA Releases Final MiFID II Q&A ahead of the Deadline

MiFID II is going to be effective starting from the 3rd January 2018. The key purpose of the upcoming regulations is to help increase transparency across financial market segments via the effective unified set of rules.

According to the ESMA official announcement, MiFID II will come into force with the purpose of:

“…strengthening the protection of investors by both introducing new requirements and reinforcing existing ones.”

The new Q&A appears to highlight several topics that relate to the best execution and research considerations. Some other points, that saw an update are the suitability and appropriateness, inducements, and provision of investment services and activities by the third country firms.

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