Conflicts of interest in financial services firms

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Conflicts of interest in financial services firms
  • Conflicts of interest rules applying to UK financial services firms
  • Application of conflicts of interest rules
  • Provision of services
  • What is a conflict of interest?
  • Identifying conflicts
  • Types of conflict of interest
  • Conflicts of interest policy
  • Record of conflicts
  • Managing conflicts
  • More...

Conflicts of interest in financial services firms

This Practice Note examines the conflicts of interest requirements which apply to firms as set out in:

  1. Commission Delegated Retained Regulation (EU) 2017/565 (the UK MiFID II Organisational Regulation), a Level 2 measure under Retained Directive 2014/65/EU (UK MiFID II), and

  2. the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) in the Financial Conduct Authority (FCA) Handbook

UK MiFID II and the the UK MiFID II Organisational Regulation apply in the UK as of IP completion day (31 December 2020).

Conflicts of interest rules applying to UK financial services firms

The conflicts of interest rules which apply to UK financial services firms are set out in:

  1. Articles 33 to 42 of the UK MiFID II Organisational Regulation, and

  2. Chapter 10 of SYSC (SYSC 10)

Application of conflicts of interest rules

Articles 33 to 35 of the UK MiFID II Organisational Regulation apply to investment firms and credit institutions.

An investment firm is a person whose regular occupation or business is the provision of one or more investment services to third parties or the performance of one or more investment activities on a professional basis.

A credit institution is an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account.

Investment firms and credit institutions are ‘common platform firms’ for the

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