FCA best execution rules

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

  • FCA best execution rules
  • Background to best execution requirements
  • Application of best execution requirements
  • The best execution obligation
  • Best execution criteria—relative importance of the execution factors
  • Best possible result: retail clients
  • Scope of the FCA’s best execution requirements
  • Executing orders directly
  • To what does the best execution obligation apply?
  • Specific instructions
  • More...

FCA best execution rules

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Background to best execution requirements

This Practice Note explains the Financial Conduct Authority's (FCA) rules for the execution of client orders, known as the best execution rules.

These best execution requirements were introduced under the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) and form part of set of common standards for investor protection throughout the EU which are designed to promote market efficiency generally and the best possible execution results for investors individually. MiFID has been replaced by the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II Directive) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together with the MiFID II framework). Both the MiFID II Directive and MiFIR entered into force on 2 July 2014. As amended, the majority of the MiFID II framework has applied since 3 January 2018, and EU Member States had until 3 July 2017 to transpose the provisions of

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