MIFID – INVESTOR PROTECTION

21 Jul: ESMA HIGHLIGHTS AREAS FOR IMPROVEMENT IN COMPLIANCE WITH MIFID II SUITABILITY REQUIREMENTS

(Source: European Securities and Markets Authority (ESMA))

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes the results of the 2020 Common Supervisory Action (CSA) on MiFID II suitability requirements.

The 2020 CSA has shown that firms overall comply with key elements of the suitability requirements that were already regulated under MiFID I, such as the understanding of products and clients and their processes and procedures to ensure the suitability of investments. However, shortcomings and areas of improvement have emerged about some of the new requirements introduced by MiFID II, notably the requirement to consider …

19 Jul: ESMA FINDS NCAS IMPOSED SANCTIONS OF €8.4 MILLION FOR MIFID II BREACHES IN 2020

(Source: European Securities and Markets Authority (ESMA))

The European Securities and Markets Authority (ESMA), the EU’s Securities Markets Regulator, has published today its third report on the use of sanctions and measures by National Competent Authorities (NCAs) under the Markets in Financial Instruments Directive (MiFID II).

NCAs activity in this area increased in 2020 compared to 2018 and 2019, both in terms of the total number of sanctions and measures and the amount of fines. Overall, in 23 (out of 30) EU/EEA Member States, NCAs imposed a total of 613 sanctions and measures in 2020 for an aggregated value of about €8.4 …