The European Securities and Markets Authority (ESMA) has recently published a set of Q&As dealing with the implementation of investor protection topics under the upcoming Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR), which is due to enter into force in 2018 and which aims to bolster investor protection by introducing new requirements as well as enhancing those currently applied.
ESMA’s Q&A document is designed to facilitate common supervisory approaches and practices in their application of MiFID II/ MiFIR (specific to investor protection). The Q&A comprises the Authority’s responses and clarifications to several queries submitted by regulatory authorities, market players and the general public and covers inter alia:
- Best execution
- Recording telephone conversations and electronic communications
- Record keeping
- Investment advice on an independent basis
- Underwriting and placement of a financial instrument
The Q&A is intended to be a ‘live’ document and, accordingly, it is expected that ESMA will update and develop the same on a continuous basis over the course of the coming months leading up to the implementation of MiFID II/ MiFIR.