MiFID II product governance requirements

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

  • MiFID II product governance requirements
  • Background to MiFID II
  • MiFID II level 1 product governance requirements
  • Product governance—Level 2 requirements
  • Product governance—requirements for manufacturers
  • Product governance—requirements for distributors
  • ESG considerations
  • Product governance—Level 3 provisions
  • Guidance for manufacturers
  • Guidelines for distributors
  • More...

MiFID II product governance requirements

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 MiFID II

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 and further parliamentary debate, 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) entered into force on 2 July 2014. The majority of the MiFID II framework provisions took effect on 3 January 2018.

MiFID II lays down a number of product governance requirements so that firms should manufacture and distribute products in a way to ensure that firms act in their clients’

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