MiFID II - MiFIR legal framework enhances investor protection through the amendment of existing provisions regarding authorization, conduct of business rules and organizational requirements applied to investment services providers and through the inclusion of new obligations and preventive supervision measures.
Notably, MiFID II introduces new requirements on product governance and independent investment advice and extends the existing rules to structured deposits. In addition, MiFID II improves the requirements in several areas, including the responsibility of management bodies, inducements, information and reporting to clients, cross-selling, staff remuneration and best execution.
These provisions are complemented by the elements included in MiFIR by which new intervention powers are given to ESMA and the national supervisors. These powers will allow to prohibit or restrict the marketing, distribution or sale of a financial instrument or a type of financial activity or practice where certain conditions are met.
Implementation at national level