ESMA_QA_1133
18/02/2020
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Subject Matter
MiFID practices for firms selling financial instruments subject to the BRRD resolution regime
Is the seller required to monitor compliance of his client’s portfolio with the 10% threshold referred to in point (a) of Article 44a(2) on an ongoing basis, for example whenever portfolio composition is affected by disinvestments?
ESMA Answer
18-02-2020

[ESMA 35-43-439 Investor protection BRRD Q&A 6]

The 10% test is only required to be performed by the seller upon the purchase of a SEL issued as of 28 December 2020. Any other transaction or event involving the client’s portfolio (e.g. a divestment or a change in market values) does not trigger the obligation of point (a) of Article 44a(2).

Status: Answer Published

Additional Information

Level 1 Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries
Topic
Information to clients on topics other than costs and charges