Consultation - Passport under MiFID

On 15 December 2006 the Committee of European Securities Regulators (CESR) published a Consultation Paper, The Passport under MiFID. The Consultation Paper set out proposals and questions for a common approach on the notification procedures set out in Articles 31 and 32 MiFID and on the future collaboration between Home State and Host State authorities that will be necessary for efficient and consistent supervision of cross-border activities. The consultation closed on 9 February 2007. On 15 February 2007 CESR published the responses it received on the Consultation Paper.

 Consultation - Inducements under MiFID

Article 19(1) MiFID provides that when providing investment services and/or, where appropriate, ancillary services to clients an investment firm must act honestly, fairly and professionally in accordance with the best interests of its clients. Article 26 Level 2 Directive sets out further requirements in relation to the receipt or payment by an investment firm of a fee, commission or non-monetary benefit.

On 15 December 2006 CESR published a Consultation Paper, Inducements under MiFID. This Consultation Paper set out proposals and questions that were aimed at developing a CESR recommendation on a common approach to the operation of Article 26 Level 2 Directive. The consultation closed on 9 February 2007. On 15 February 2007 CESR published the responses it received on the Consultation Paper.

Consultation - Recommendation on the list of minimum records in Article 51(3) Level 2 Directive

Article 51(3) Level 2 Directive establishes that competent authorities shall draw up and maintain a list of the minimum records investment firms are required to keep under MiFID.

On 20 October 2007 CESR published a Consultation Paper, The list of minimum records in Article 51(3) Level 2 Directive. The consultation closed on 27 November 2006.

On 9 February 2007 CESR published its recommendation that set out the content of the list of minimum records that competent authorities need to draw up in accordance with Article 51(3) Level 2 Directive.

CESR advises that Member State competent authorities may add to the list other record keeping obligations. At the moment CESR is attempting to reach progressive convergence on the basis of the proposed list of minimum records.

During 2008 CESR will conduct a further review of convergence in this area. 

Consultation - CESR Level 3 Guidelines and recommendations on publication and consolidation of markets data

On 20 October 2007 CESR published a Consultation Paper, Publication and Consolidation of MiFID Market Transparency. The Consultation Paper outlined action that CESR members proposed to take to reduce barriers to consolidation of transparency information. This included joint interpretations of the transparency publication provisions and proposed CESR Level 3 guidance on certain areas including the point at which a trade should be considered concluded for post-trade publication purposes.

On 9 February 2007 CESR published its recommendations and guidelines on the requirements for the publication and consolidation of market information under MiFID. The guidelines aim to address several practical issues on how regulated markets, Multilateral Trading Facilities (MTFs) and investment firms act when publishing transparency information required under MiFID and to ensure supervisory convergence in the day to day implementation of MiFID. CESR’s guidelines and recommendations do not constitute European Union legislation and will not require national legislative action. CESR members are to apply the guidelines in their day-to-day regulatory practices on a voluntary basis. CESR notes that there is a general commitment by all its members to consider that investment firms, regulated markets and MTFs would fulfil their requirements when following the CESR guidelines.