MiFID - Investor Protection

The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).

The Q&As on MiFID II and MiFIR investor protection and intermediaries’ topics update answers on:

  • Best execution – Disclosure of reports to the public
  • Other issues – Drafting change on understanding the term “ongoing relationship”

The purpose of the MiFID II/MiFIR investor protection Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR.

ESMA will continue to develop this Q&A document on investor protection topics under MiFID II and MiFIR, both adding questions and answers to the topics already covered and introducing new sections for other MiFID II investor protection areas not yet addressed in this Q&A document.

Effects of product intervention measures regarding CFDs and binary options on market participants and clients

Responding to this paper
ESMA invites comments on this paper and in particular on the specific questions summarised in Chapter 5.

ESMA will consider all comments received by 4 November 2019.

All contributions should be submitted online at www.esma.europa.eu under the heading ‘Your input - Consultations’.

The European Securities and Markets Authority (ESMA) has today launched a call for evidence on the effects of product intervention measures regarding contracts for differences (CFDs) and binary options on market participants and clients. 

The European Commission asked ESMA to report on its experience with product intervention powers, including the practical effects of the product intervention measures. As part of its review and renewal process of the temporary measures in relation to binary options and CFDs, ESMA has collected significant information on the impact of its product intervention powers. This call for evidence invites market participants, consumers and their associations to share any further information on the effects of the measures.

Next Steps

ESMA will consider the responses to this call for evidence when drafting its response to the European Commission. The call for evidence closes by 4 November 2019. Please submit your contributions online via ‘Your input - Consultations’.

The European Securities and Markets Authority (ESMA) has today issued an opinion on product intervention measures taken by the National Competent Authority (NCA) of Cyprus.

ESMA’s opinion concludes that the proposed measures are justified and proportionate. ESMA’s qualifies this conclusion in relation to the application of the measures in the case of cross-border activities.

ESMA’s opinion also concludes that it is necessary for NCAs of other Member States and the Central Bank of Cyprus to take product intervention measures that are at least as stringent as ESMA’s measures. In accordance with Article 43(3) of MiFIR if a competent authority takes actions contrary to an opinion adopted by ESMA, it shall immediately publish on its website a notice fully explaining its reasons for so doing.


NCAs may take product intervention measures in accordance with Article 42 of Regulation (EU) No 600/2014. At least one month before a measure is intended to take effect, an NCA must notify all other NCAs and ESMA of the details of its proposed measure and the related evidence, unless there is an exceptional case where it is necessary to take urgent action.

In accordance with Article 43 of Regulation (EU) No 600/2014, ESMA performs a facilitation and coordination role in relation to such product intervention measures taken by NCAs. After receiving notification from an NCA of its proposed measure, ESMA must adopt an opinion on whether the proposed measure is justified and proportionate. If ESMA considers that the taking of a measure by other NCAs is necessary, it must state this in its opinion.

The opinions that ESMA previously issued on proposed national product intervention measures are published on its website.

ESMA publishes responses to its Call for evidence on impact of the inducements and costs and charges disclosure requirements under MiFID II.

To view the responses, please click the button below.