ESMA publishes new Q&A on investor protection under MiFID II


The European Securities and Markets Authority (ESMA) has published a Questions and Answers (Q&A) document regarding the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).

MiFID II will enter into application on 3 January 2018 and will strengthen the protection of investors by both introducing new requirements and strengthening existing ones.

The purpose of this Q&A is to promote common supervisory approaches and practices in the application of MiFID II/ MiFIR for investor protection topics, providing responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of MiFID II/MiFIR requirements. This Q&A provides clarifications on the following topics:

  • Best execution
  • Recording telephone conversations and electronic communications
  • Record keeping
  • Investment advice on an independent basis
  • Underwriting and placement of a financial instrument
  • Inducements (research)

Next steps

ESMA will continue to develop its Q&A on investor protection topics under MiFID II in the coming months, both adding questions and answers to the topics mentioned above and introducing new sections for other MiFID II investor protection areas not yet addressed in this Q&A.

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