ESMA looks at MiFID 2 investor protection

ESMA has added 10 new questions to its Q&As on investor protection under MiFID 2 and MiFIR.  The new questions cover:

  • timing requirements for execution reports;
  • how to report when orders are sent for execution to different entities within a group;
  • inclusion of ECP transactions within data execution venues publish;
  • how investment firms operating OTFs should set their execution policies;
  • the interpretation of the terms “passive” and “aggressive” orders;
  • whether arranging meetings for investment firms with corporate issuers can be considered as research for the purposes of the RPA model;
  • how to categorise macro-economic analysis in terms of research;
  • how firms providing portfolio management or independent investment advice should treat research relating to fixed income, currencies or commodities;
  • the approach firms should take to ensure their research budget is used in the best interests of clients; and
  • how the estimated client research charge should be presented.

FIN. Team