MiFID II conduct of business and investor protection requirements
MiFID II conduct of business and investor protection requirements

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

  • MiFID II conduct of business and investor protection requirements
  • Background to MiFID II and UK Conduct of Business requirements
  • Structured deposits and insurance-based products
  • Client categorisation
  • Client agreements
  • Information provided to clients
  • Independent advice
  • Inducements
  • Research
  • Placing
  • more

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance, see Practice Note: The impact of Brexit on the MiFID II regime.

Background to MiFID II and UK Conduct of Business requirements

Following the financial crisis of 2008, the European Commission (Commission) implemented a review of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) with the view to improving the functioning of financial markets and to strengthening investor protection, which led to the adoption of a legislative proposal for the revision of MiFID. As a result of the review, the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together the MiFID II Framework) were adopted and entered into force on 2 July 2014. The majority of MiFID II provisions took effect from 3 January 2018.

MiFID II made a number of changes to the requirements in MiFID concerning the way that firms should conduct their business. MiFID’s conduct of business requirements were predominantly implemented in the UK through the Financial Conduct Authority’s (FCA) Conduct of Business Sourcebook (COBS). The MiFID II regime had to be transposed into UK law by 3 July 2017. This Practice Note focuses on the changes made to COBS in order to implement MIFID II and the relevant level 2 measures, including Commission Delegated Regulation (EU) 2017/565 (the MiFID II Delegated Regulation) and Commission Delegated Directive 2017/593/EU (the MiFID II Delegated Directive).

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