ESMA has published its final report on product intervention requirements under MiFIR. It notes that nearly all national authorities have used the measures in relation to marketing or selling binary options or CFDs to retail clients. ESMA has now published advice to the Commission, based on experience and feedback, which:
- suggests the Commission needs to address the risk of arbitrage between MiFID firms and fund managers;
- asks the Commission to look at how temporary measures can be transformed into permanent ones, as well as extending the time for temporary measures to 18 months;
- says more clarity is needed on using measures on a cross-border basis; and
- suggests there should be a mechanism for Member States easily to adopt ESMA measures.