MiFID II
MiFID II, in plain words.
The EU law for firms that sell investments or give investment advice: they act in the client's best interest and keep a record that shows it. Markets in Financial Instruments Directive, Directive 2014/65/EU. Irish law since January 2018, through the European Union (Markets in Financial Instruments) Regulations 2017 (S.I. 375/2017).
Who it covers
Investment firms, and banks and other firms providing investment services such as advice, portfolio management or dealing in shares, bonds and funds.
What it asks
Suitability and appropriateness
Before advice or portfolio management, check the investment suits the client; for other services, check the client understands the product (Article 25).
Best execution
Get the best result for the client when carrying out an order (Article 27).
Conflicts and inducements
Manage conflicts of interest, and pay or take only the commissions that improve the service (Articles 23 and 24).
Records of calls and messages
Record the calls and electronic messages that lead to a transaction, and keep them for five years (Article 16(7)).
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Competence
The people who advise or inform clients have the knowledge and competence for it, as the Central Bank's Minimum Competency Code sets.
Transaction reporting
Under MiFIR, Regulation (EU) No 600/2014 (Article 26).
Who supervises
The Central Bank of Ireland.
The official text
Directive 2014/65/EU on EUR-Lex: https://eur-lex.europa.eu/eli/dir/2014/65/oj
What Eurus keeps
Eurus's law register holds one duty from this law, each with what it asks, who it binds, what shows it, and the date it was read against the official text.
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