Capital markets investor protection

This Overview provides a guide to the Financial Services content within the Capital markets investor protection subtopic, with links to the appropriate materials.

MiFID II conduct of business and investor protection requirements

The recast Markets in Financial Instruments Directive 2014/65/EU (OJ L 173/349) (EU MiFID II) and the Markets in Financial Instruments Regulation (EU) 600/2014 (OJ L 173/84) (EU MiFIR) entered into force on 2 July 2014. The majority of the requirements of EU MiFID II and EU MiFIR had effect from 3 January 2018.

EU MiFID II contains requirements which are relevant to many aspects of capital markets conduct of business and investor protection, including:

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client categorisation
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client agreements
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information provided to clients
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independent advice
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inducements
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research
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investment advice
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suitability and suitability reports
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appropriateness assessments

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Latest Financial Services News

FCA publishes 2025–2030 strategy

The Financial Conduct Authority (FCA) has published its 2025–2030 strategy, outlining a five-year plan in which it aims to deepen trust, rebalance its approach to risk, support economic growth and improve lives. The strategy is structured around four priorities: becoming a smarter regulator, supporting growth, helping consumers navigate their financial lives and fighting financial crime. The strategy aims to improve operational efficiency through reforms to supervision, digitisation of processes and reductions in data collection requirements. It also includes commitments to enhance market integrity, protect consumers and promote a competitive financial services environment. A speech by the FCA’s chief operating officer Emily Shepperd, addressing the Association of British Insurers (ABI), accompanies the strategy.

EMIR 3—ESMA publishes final report specifying the conditions of the active account requirement

The European Securities and Markets Authority (ESMA) has published its final report setting out draft Regulatory Technical Standards (RTS) concerning the active account requirement (AAR) under the European Market Infrastructure Regulation (EU) 2024/2987 (EMIR 3). Based on feedback received during the public consultation, ESMA has adjusted the operational conditions and stress-testing requirements associated with the AAR. The report outlines simplified reporting requirements, clarifies the representativeness obligation, and provides further detail on the operational conditions. ESMA will submit the report and draft RTS to the European Commission, which has a three-month period for endorsement. The RTS will then be subject to review by the European Parliament and the Council of the EU.

EU agrees to shorten securities settlement cycle to T+1 under CSDR amendment

The Council of the EU and the European Parliament have provisionally agreed to amend the EU Central Securities Depositories Regulation (CSDR) (Regulation (EU) 909/2014) to shorten the standard settlement cycle for securities transactions executed on EU trading venues, from two business days (T+2) to one business day after the trade date (T+1). The change, proposed by the European Commission on 12 February 2025, aims to improve post-trade efficiency, align EU practices with global markets, and enhance the competitiveness of EU capital markets. An exemption will apply to certain securities financing transactions (SFTs), provided they are documented as single transactions comprising two linked operations. The new rules are expected to be formally adopted and will apply from 11 October 2027.

Financial Services weekly highlights—19 June 2025

This week's edition of Financial Services weekly highlights includes the government’s call for UK regulators to prioritise growth and the implications, particularly for enforcement; the FCA’s commitment to conduct a ‘lessons learned’ review following its controversial ‘name and shame’ proposals; theUpper Tribunal’s decision in the case of Craig Donaldson and David Arden; the EBA’s consultation on CRDIV draft RTS for acquisitions in credit institutions; ESMA’s finalised advice on prospectus streamlining and liability framework and the approval by the FATF plenary of revised standards on payment transparency and guidance on financial inclusion and RBA.

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