ESMA updates MiFID 2 FAQs

ESMA has updated its set of FAQs on MiFID 2 investor protection. New questions cover:

  • post sale reporting – to confirm that the duty to report on depreciation of portfolios applies to professional clients, and not just to retail;
  • record keeping – to confirm securities financing transactions are within the scope of record keeping requirements; and
  • inducements – to confirm the inducements requirements apply to payments made or benefits provided to third parties by investment firms in connection with providing independent investment advice or portfolio management,  and to give guidance on the legal status of a fee etc that has been received as an inducement before it is transferred.