Questions on MiFID

The European Commission has launched a special website for questions and answers on MiFID, which replaces its current Q&A list. CESR13 has also published a third update of its list with answers to frequently asked questions on MiFID.

CESR consultation on MiFID appropriateness test

Pursuant to article 19(5) of MiFID an investment firm must “ask the client or potential client to provide information regarding his knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded so as to enable the investment firm to assess whether the investment service or product envisaged is appropriate for the client”. An exception to these obligations applies to various non-complex financial instruments. CESR wants increased clarity on the issue of which products are considered non-complex. In its Consultation document it analyses a number of products to assess whether they are complex or non-complex. Market parties have until 17 July 2009 to respond to the consultation document.

Waivers from pre-trade transparency obligations

Member states may waive certain MiFID conditions regarding pre-trade and post-trade transparency obligations under certain conditions. CESR has published a number of examples of situations in which such a waiver may or may not be granted to a market party or an investment enterprise operating a Multilateral Trading Facility.