ESMA_QA_1133

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1133

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Information to clients on topics other than costs and charges

Subject Matter: MiFID practices for firms selling financial instruments subject to the BRRD resolution regime

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Question

Submission Date: 18 February 2020

Is the seller required to monitor compliance of his client’s portfolio with the 10% threshold referred to in point (a) of Article 44a(2) on an ongoing basis, for example whenever portfolio composition is affected by disinvestments?

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ESMA Answer

Answer Date: 18-02-2020

[ESMA 35-43-439 Investor protection BRRD Q&A 6] The 10% test is only required to be performed by the seller upon the purchase of a SEL issued as of 28 December 2020. Any other transaction or event involving the client’s portfolio (e.g. a divestment or a change in market values) does not trigger the obligation of point (a) of Article 44a(2).

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This document was automatically extracted from the ESMA EMIR Q&A database.