MiFID II

Recent Articles

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    04/02/2025

    FCA issues first fine for breach of UK MiFIR transaction reporting regime: key takeaways for firms

    On 29 January 2025, the UK Financial Conduct Authority (“FCA”) issued a Final Notice to Infinox Capital Limited (“Infinox”), fining the firm £99,200 for failing to submit 46,053 transaction reports. While the FCA has previously issued fines for transaction reporting failures under the pre-MiFID II regime, this is the first FCA fine for a breach of the Markets in Financial Instruments Regulation (“MiFIR”) transaction reporting regime since it entered into force on 3 January 2018. As such, while the fine has caught the industry’s attention, it also...
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    08/11/2024

    Levelling the playing field in investment research: introducing payment optionality for pooled funds (FCA CP24/11)

    On 5 November 2024, the Financial Conduct Authority (“FCA”) published a consultation paper (CP24/21) on investment research payment optionality for fund managers. The FCA is proposing to take forward the recommendations of the Investment Research Review (“IRR”) and feedback to its earlier consultation for MiFID investment firms, by extending payment optionality for investment research to fund managers and pooled funds (including UCITS and AIFs).The proposals would allow fund managers to purchase investment research by making joint payments (i.e. by paying for bundled investment...
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    07/06/2024

    ESMA issues first formal guidance on use of AI in retail financial services

    The European Securities and Markets Authority (ESMA) recently released a public statement on the use of artificial intelligence (AI) in the provision of retail investment services. The statement provides initial guidance to investment firms and credit institutions using, or planning to use, AI so they can ensure compliance with their obligations under MiFID II. It also outlines live use cases and ESMA’s understanding of the “known challenges” currently facing firms in adopting AI.Emerging ESMA approach?While this is by no means ESMA’s first publication or statement on AI,...
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    31/05/2024

    Ancillary Activities Exemption – a change in approach for commodity derivatives and emission allowances firms

    On 29 May 2024, the Financial Services and Markets Act 2000 (Commodity Derivatives and Emission Allowances) (Amendment) Order 2024 (SI 2024/719) (the “2024 Order”) was published alongside an explanatory memorandum. The 2024 Order omits prospective amendments to the UK regulated activities perimeter, with the effect that the planned changes to the ancillary activities regime for firms trading commodity derivatives or emission allowances have been indefinitely delayed. This followed significant concerns from industry that moving to a qualitative approach to determining whether firms require...
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    24/05/2024

    MiFID/MiFIR review: ESMA publishes series of consultation papers on transparency topics

    On 21 and 23 May 2024, the European Securities and Markets Authority (“ESMA”) published three consultation papers, as part of the ongoing MiFID/MiFIR review.The revised Markets in Financial Instruments Directive and Regulation (known as MiFID III/MiFIR II) came into force on 28 March 2024. The package was finalised amid widespread industry concern at the uncertainty created by apparent misalignments between the Level 1 text of MiFIR as amended, and the Level 2 text, which is yet to be updated, as well as other issues. On 27 and 28 March 2024 respectively, the EU Commission published...
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    10/04/2024

    FCA Consultation on Payment Optionality for Investment Research (CP24/7)

    On 10 April 2024, the FCA published a consultation on Payment Optionality for Investment Research (CP24/7). In the consultation, the FCA proposes a new option for asset managers when paying for investment research, in addition to existing options.  Under the current UK rules, which stem from the legacy EU MiFID II regime, there are two ways in which UK asset managers can currently pay for investment research: By agreeing a separate research charge with each of their clients, with the payment for research made from a Research Payment Account (the “RPA model”); and By...
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