Our helpful top ten briefing note highlights the most important elements of the Markets in Financial Instruments Directive 2 (MiFID2) for fund managers. MiFID2 deals primarily with authorisation, systems and conduct requirements in relation to investment business. The briefing note also covers the Markets in Financial Instruments Regulation (MiFIR) which relates to transparency, transaction reporting, clearing and supervision of positions.
MiFID2 and MiFIR will come into force on 03 January 2018.
This briefing note was comprehensively updated in August 2016, to take account of the publication at that time of the draft EU Level 2 measures, the UK FCA’s first two consultation papers, and the outcome of the Brexit referendum vote.
Please note, though, that the briefing note below does not reflect developments since that date, in particular in connection with specific national implementation by individual Member States beyond what is required under EU law.
This briefing note outlines the following key issues arising out of MiFID2 and MiFIR for fund managers:
- The application of MiFID2/MiFIR to EU managers which are regulated under AIFMD and the UCITS Directives.
- Dealing commissions and the consumption of research under MiFID2.
- The ability of firms to rely on the MiFID 1 transaction reporting exemptions.
- MiFID2 transaction record keeping including phone taping.
- MiFID1 post-trade transparency requirements.
- Status of obligations relating to best execution of orders.
- Trading on dark pools under MiFID2.
- Sell side firms allocating IPOs and placings among their clients are affected under MiFID2.
- Algorithmic trading requirements and the impact of MiFID2 on firms using a DMA system to trade.
- Product governance provisions under MiFID2.
Click here to view the full briefing note.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.