MiFID II Series: Investment Advice

09-03-2017

Author: Robert Cain, Dara Harrington, Aiden Small and Maedhbh Clancy



Under MiFID, “investment advice” is the provision by an investment firm of a “personal recommendation” to a client, either at the client’s request or at the firm’s initiative, in respect of one or more transactions relating to financial instruments.

Under MiFID II, the definition of “investment advice” itself is not changing. However, the concept of “personal recommendations” is being widened.

MiFID II also draws a new, crucial distinction between the provision of investment advice on an independent basis, and the provision of investment advice on a non-independent basis. Additional client-facing and internal obligations will be imposed on firms who provide investment advice on an independent basis from 3 January 2018, and those firms should be putting processes in place now to ensure that they are well-prepared for the new rules

Read the full briefing here.

 

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