Happy MiFID II Day

MiFID II

Today is the launch date of MiFID II

MiFID II is to ensure fairer, safer and more efficient markets and facilitate greater transparency for all participants.

More information about MiFID II can be found here. However, while ESMA highlights the importance of  MiFID II, investment firms have been handed a temporary six-month grace period from MiFID II’s legal entity identifier (LEI) reporting requirements.

An LEI is for a list of transferable securities including shares, ETPs (including most passives) structured deposits, etc but it does NOT include collective investments or managed funds. It just means that, without it , an investment firm cannot be considering all asset groups and deal in specialised investments; being restricted to fund managers (plus a few others- some passives are collectives)

Can an investment adviser without an LEI claim to be independent if it has no LEI? Check out the adviser firm you are dealing with here  to see if they have an LEI and make sure they are ready for MiFID II.

 

The views expressed in this article are not to be construed as personal advice. You should contact a qualified and ideally regulated adviser in order to obtain up to date personal advice with regard to your own personal circumstances. If you do not then you are acting under your own authority and deemed “execution only”. The author does not except any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.

This article was published on 3rd January 2018


“About

Chris Lean

Chris is a Chartered Financial Planner who writes blogs and articles to simplify and explain some of the financial issues that affect UK expats. Subjects include; hot topics, regulation and the ever-changing world of finance.

 

 

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