ESMA_QA_2286
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/2286
Regulatory Context
Regulation : MIF2
Level 1 Regulation: Directive 2014/65/EU - Markets in Financial Instruments Directive (MiFID II)
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: Scope of ancillary services and supervisory convergence
Question
Submission Date: 18 September 2024
What is the exact scope of the ancillary service, point 5 in annex I, Section B: Investment research and financial analysis or other forms of general recommendations relating to financial instruments?
ESMA Answer
Answer Date: 26-11-2024
The answer below is provided by the European Commision. The answers provided by the European Commission are provided pursuant to Article 16b(5) of Regulation 2010/1095 to clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts. ANSWER: The activities consisting of investment research and financial analysis or other forms of general recommendations relating to financial instruments are ancillary services listed in Section B(5) of Annex I of Directive 2014/65/EU. Other forms of general recommendations, such as the ones that are not labelled as investment research or do not include a statement indicating that the recommendation is objective and has been prepared in an independent way, include any 7 form of general recommendation about a transaction in a financial instrument or a type of financial instrument, including those falling under the definition of investment recommendations as set out in Article 3(1)(35) of Regulation (EU) No 596/2014. Pursuant to Article 6 of Directive 2014/65/EU, where an entity providing investment services listed in Section A of Annex I of that Directive provides the ancillary services described in Section B of Annex I, its authorisation should also cover those ancillary services, including those set out in Section B (5) of Annex I. However, and without prejudice to any national law requirements applicable to ancillary services, an entity providing only the services referred to in Section B of Annex I of Directive 2014/65/EU does not have to obtain an authorisation pursuant to that Directive, as it cannot be solely granted for the provision of ancillary services.
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