EC FAQ on Obtaining Brokerage and Research Services Via Non-EU Brokers
EC published guidance through its frequently asked questions (FAQ) that clarify how EU investment firms should interact when they seek brokerage and research services from broker-dealers in non-EU countries.The U.S. SEC also announced measures to facilitate cross-border implementation of the second Markets in Financial Instruments Directive (MiFID II) research provisions in the EU. SEC issued three no-action letters to provide a way for market participants to comply with the research requirements of the revised MiFID II in a manner that is consistent with the U.S. federal laws.
EC recognized the need to clarify how firms subject to the Markets in Financial Instruments Directive (MiFID II) can obtain such services from other jurisdictions. The FAQ notes the relevant provisions and explains how EU firms can procure international research and brokerage services in full compliance with their obligations. This guidance will contribute to ensure that research budgets are decoupled from brokerage, in compliance with the requirements laid out in MiFID II. FCA also welcomed this announcement and noted that clarifications provided by both the EC and SEC staff will address key concerns raised with FCA by UK market participants. The clarifications ensure that firms can continue to access U.S. research from January 03, 2018, while also maintaining the investor protection safeguards of the MiFID II regime.
Related Links
Keywords: Europe, Americas, EU, US, Securities, MiFID II, Brokerage and Research Services, FAQ, FCA, SEC, EC
Previous Article
ECB Finalizes Addendum to Guidance on Non-Performing LoansRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards