ESMA’s Public Statement on the application of product intervention measures under MiFIR

24 Jul 2019

On the 11th July 2019, the European Securities and Markets Authority (“ESMA”) issued a Public Statement which aims to draw the attention of all regulated entities which either provide, distribute or sell Contracts for Differences (“CFDs”) to retail clients and subsequently address, amongst others, the following issues: 

 

Professional Client on Request

 

  • further clarification on the client categorisation process;

  • the possibility to become professional client on request;

  • more detail on investor protection; and

  • appropriate complementary assessment.

 

Marketing, distribution or sale by third-country CFD providers

 

  • the service provided by these CFD providers is only allowed to the clients in the Union at the client’s own exclusive initiative;

  • participation restriction in activities where the firm is acting as a substitute for the CFD provider; and

  • guidelines on intra-group marketing, when CFD providers established in the Union are marketing the possibility for retail clients to move their accounts to an intra-group third country entity.

 

Please feel free to contact us in order to obtain more information about the ESMA’s Public Statement and its requirements.

 

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