Despite the pushback in the market, the AEMF has maintained its requirement to implement complaints policies for both private and professional clients (in itself and for business customers). On request, the AEMF sought to clarify (although not in the course of its advice) what amounts to a “complaint” (“a statement of dissatisfaction addressed to a company by a client or potential customer in the course of the provision of investment services”), which is particularly relevant with respect to complaints filed by professional clients. But the explanation is high level and therefore it is unlikely that there will be much material help. Unauthorized Use of Customer Financial Instruments Procedure Requirements: To be reclassified as a professional customer under MiFID and MiFID II regulations: The MiFID Directive currently prohibits the payment of fees or commissions and the receipt of other non-monetary services between companies and persons other than their customers (. B, for example, consultants and distributors), as long as certain criteria are not met. The purpose of this prohibition is to ensure that these payments and benefits are not incentivized and do not cause conflicts with the interests of customers. MiFID II has not introduced any major changes to customer order management rules. The existing obligation to publish unen executed customer restraint orders to the public is extended to the collection of other trading platforms (e.g. B.OTF), which are however consulted by the ESMA as part of the data publication requirements, which are dealt with in a separate note. In this update, we focus on the intricacies of client and agent agreements as clients involving investors, discrete fund management companies (DFMs) and financial advisors. We discuss the impact of their wording on Brooks Macdonald`s service and the impact MiFID II will have on what they contain. While most companies already meet these enhanced standards, companies must verify that the content of their agreements complies with MiFID II. In view of the fact that the objective of the MiFID II Directive is to increase investor protection and reduce exemption zones, including the strengthening of the treatment of eligible counterparties, proposed by the AEMF at its consultation in the summer of 2014, and confirmed in its technical advice that the types of eligible investors are restricted.
The AEMF`s advice is to eliminate investors who have chosen to be professional clients from the opportunity to choose eligible counterparties. MiFID currently requires companies authorized to execute customer orders to implement procedures and agreements that provide for the prompt, fair and rapid execution of customer orders in relation to other customer orders or business interests.