ESMA_QA_1784
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1784
Regulatory Context
Regulation : MIFIR
Level 1 Regulation: Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014 - Investor Protection and Intermediaries
Level 2 Regulation: No information available
Level 3 Regulation: No information available
Topic: Underwriting and placing
Subject Matter: Underwriting and placing
Question
Submission Date: 10 October 2016
Article 38(1)(a) of the MiFID II Delegated Regulation states that “investment firms which provide advice on corporate finance strategy, as set out in Section B (3) of Annex I, and provide the service of underwriting or placing of financial instruments, shall, before accepting a mandate to manage the offering, have arrangements in place to inform the issuer client of the various financing alternatives available with the firm”. What are “the various financing alternatives” to be considered?
ESMA Answer
Answer Date: 10-10-2016
[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 6, question 1] The various financing alternatives may be limited to those appropriate to the issuer client’s needs. However, they should not be limited to financing alternatives that constitute investment services; for example, loans or extension of credit facilities shall be included if appropriate and offered by the firm. The firm should inform the issuer client which financing alternatives have not been considered, including financing alternatives not offered by the firm, with a short explanation of why they were discounted.
This document was automatically extracted from the ESMA EMIR Q&A database.