Is an AIFM a MiFID investment firm?
The MiFID II product governance requirements apply to full scope AIFMs which are also authorised to provide MiFID investment services (i.e. CPMI firms) but only in connection with the performance of such MiFID investment services.
Which firms does MiFID II apply to?
MiFID II applies to MiFID firms, i.e. those Financial Services businesses undertaking MiFID Business anywhere in the European Economic Area (‘the EEA’).
What is investment research under MiFID II?
Investment Research is material that implicitly or explicitly recommends or suggests an investment strategy in relation to one or more financial instruments or issuers, is intended for general distribution, and is either labelled as such or otherwise presented as objective or independent in nature.
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.
What is the difference between AIFMD and Ucits?
The key difference between the two texts is that UCITS requires a “risk management process” that “enables it to monitor, measure at any time” whereas the AIFMD legislation require “risk management systems” that will be used “in order to identify, measure, manage and monitor all risks … to which each AIF is or may be …
What are Ucits and AIFMD?
The two main pieces of EU legislation in this area are the Directive on Undertakings for Collective Investment in Transferable Securities (UCITS) and the Alternative Investment Fund Managers Directive (AIFMD).
What is an Article 3 firm?
Many IFAs in the UK, though, are currently what is known as “article 3 exempt” firms. This is, essentially, a status available to firms that carry on only a limited range of MiFID activities – and enables them to choose whether to be treated as an “investment firm” or not.
What is MiFID II research unbundling rules?
These ‘research unbundling’ provisions aim to reduce the potential conflict of interest for those investment firms offering both execution and research services. As per Article 27 of MiFID II, investment firms are obliged to execute orders on terms that are the most favourable to their clients (‘best execution’).
What does MiFID Exempt mean?
Under MiFID 2, “article 3” or “exempt investment” firms must meet all the following criteria: Not be allowed to hold client money or assets, and therefore cannot owe their clients’ money.
Are ETFs UCITS?
UCITS ETFs are ETFs (Exchange Traded funds) domiciled in Europe and subject to European Union regulation. Under UCITS, an ETF must be diversified enough. No single security held by the fund can make up more than 20% of the fund’s NAV (Net Asset Value).
What does investment services and activities mean in MiFID 2?
Article 4(2) MiFID II. ‘investment services and activities’ means any of the services and activities listed in Section A of Annex I relating to any of the instruments listed in Section C of Annex I.
Which is a subset of firms subject to MiFID?
This means that the CRR definition is a subset of those firms subject to the MiFID definition. CRR investment firm is defined in subparagraph (2) of Article 4 (1) of the CRR as a MiFID investment firm, excluding:
What does MiFID stand for in EU law?
MiFID is a European Union law that standardizes regulation for investment services across all member states of the European Economic Area. A multilateral trading facility (MTF) is a trading system that facilitates the exchange of financial instruments between multiple parties.
How is MiFID related to multilateral trading facility?
Related Terms. MiFID is a European Union law that standardizes regulation for investment services across all member states of the European Economic Area. A multilateral trading facility (MTF) is a trading system that facilitates the exchange of financial instruments between multiple parties.