The EU dictates the conditions - ESMA updates the Q&A regarding the MIFID II directive

European Securities and Markets Authority (ESMA) added 12 new questions and answers for your Q&A document (Questions and Answers) on the implementation of topics concerning investor protection under the Markets in Financial Instruments and Regulation Directive (MiFID II / MiFIR). Are there any spectacular changes ahead of us ...?

The revolution is just around the corner ...

The new Q&A includes topics related to customer categorization, order reporting, telephone and electronic communication recording, due diligence rules, and information on transaction costs and charges.

The general information in Q&A MiFID II explains the following topics:

• The best implementation;
• Utility and suitability;
• Recording of telephone conversations and electronic communications;
• Reporting orders;
• Accounting;
• Investment advice on an independent basis;
• Information about fees and costs;
• Insurer and the location of the financial instrument;
• Customer categorization.

Documents regarding MIFID II

The Union dictates the conditions

MiFID II will enter into force on January 3, 2018. According to its authors, the introduced changes are to significantly strengthen the protection of investors, both by introducing new requirements and strengthening the existing ones. The purpose of the so-called The Q&A is to promote common approaches and practices regarding the supervision and application of MiFID II / MiFIR in the area of ​​protecting clients of investment firms.

In the coming months, ESMA will continue to develop Q&A on investor protection issues under MiFID II, adding questions and answers to the topics already discussed and introducing new sections on other areas of protection not yet covered in this document.

One of the most important topics for Forex traders has not yet been discussed - the possible limitation of leverage in the Forex market. final conference at the Polish Ministry of Finance gave a clear signal who dictates the conditions here. The Polish regulator admitted that with key changes it would wait for provisions to be implemented in the MIFID II directive. It may turn out that the reduction of leverage (if it happens) will not only cover Polish residents but all member countries.

What is MIFID?

MIFID (from Markets in Financial Instruments Directive) is a European directive regulating the provision of financial services in the European Economic Area, including Poland. It covers in detail issues related to the supervision over trading in financial instruments and customer service by financial institutions. The main intention of the directive is to increase the protection of the above-mentioned clients, increase the transparency of the operation of investment firms, inform about the risk related to a given service, as well as manage "conflicts of interest", which is also to translate into an increase in the quality of service. It was the MIFID Directive that introduced the obligation to categorize clients and the adequacy of the provision of services to their state of knowledge and experience.