Who is MiFID II applicable to?

MiFID II not only covers virtually all aspects of financial investment and trading but also covers virtually all financial professionals within the EU. Bankers, traders, fund managers, exchange officials, and brokers—and their firms—all have to abide by its regulations.

What is reportable under MiFID II?

Under MiFID II/MiFIR, operators of all trading venues (including Multilateral Trading Facilities, MTFs, and Organised Trading Facilities, OTFs) must report transactions traded on their platform when executed through their systems by a firm which is not subject to the regulation.

What is a professional client under MiFID?

MiFID Professional clients are: Investment firms. Other regulated or authorised financial institutions. Insurance and reinsurance companies. Collective investment schemes and management companies of such schemes. Pension funds and management companies of such funds.

Does MiFID apply to UK firms?

If you are a non-UK firm, for example the UK branch of a US firm, MiFID does not apply to you. However, if MiFID would have applied to you if you had been incorporated or formed in the United Kingdom, you will be a third country investment firm under the FCA’s rules.

How is MiFID implemented in the UK?

The EU MiFID framework was transposed and implemented in the UK by a combination of Handbook rules, Treasury legislation, and directly applicable EU regulations (in the latter case, notably by EU MIFIR (No 600/2014), the MiFID Org Regulation ((EU) 2017/565) and a number of RTSs/ITSs).

Who needs to report under MiFID?

2. The core reporting obligation is that investment firms which execute transactions in financial instruments must report complete and accurate details of those transactions to their home competent authority as quickly as possible, and no later than the close of the following working day.

What is an exempt MiFID firm Article 2?

Article 2(1)(d) of MiFID II exempts persons dealing on own account in financial instruments from the requirement to be authorised as a MiFID investment firm. However, it also lists a set of circumstances where such an exemption does not apply.

What is the difference between retail and professional clients?

A “Retail Client‟ is a client who is not a professional client or an eligible counterparty. A “Professional Client‟ is a client who possesses the experience, knowledge and expertise to make investment decisions and properly assess the risks that accompany all investment services, activities and financial instruments.

Who is considered a professional investor?

professional investor means any bank, bank holding company, savings institution, farm credit institution, trust company, insurance company, investment company registered under the federal Investment Company Act of 1940, financial services loan company, pension or profit-sharing trust or other financial institution or …

Does MiFID 2 apply to the UK?

Both MiFID II and MiFIR have been adopted locally by the UK, and the UK regulator, the Financial Conduct Authority, has played a key role in shaping European regulations. However, there are fears in the EU that the FCA will lighten the local rules to create a more competitive environment for UK firms.

Who is subject to MiFID II reporting?

What is a MiFID optional exemption firm?

a firm that is an exempt investment firm for the purpose of regulation 8 of the MiFI Regulations.

Who is a client under MiFID?

MiFID Professional clients are: Insurance and reinsurance companies. Collective investment schemes and management companies of such schemes. Pension funds and management companies of such funds.

Can a business be a retail client?

Who is considered a Retail Client? Any client who does not fall into the category of a sophisticated/professional investor or does not meet the wholesale client definitions in the Corporations Act are considered retail clients.

What is a professional investor under MiFID?

A “professional investor” is defined as an investor that either is considered to be a professional client or is, on request, treated as a professional client within the meaning of the financial markets framework directive, colloquially known as “MiFID.” The U.K. definition is set out in Appendix A hereof.

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