1This sourcebook contains a number of provisions which transposed MiFID. A rule transposed a provision of MiFID if it is followed by a ‘Note:’ indicating the article of MiFID or the MiFID Delegated Directive which it transposed2.
In order to help firms which are subject to those requirements which implemented2 MiFID to understand the full extent of those requirements, this sourcebook also reproduces a number of provisions of the 2MiFID Org Regulation, marked with the status letters “UK”2.
This sourcebook does not reproduce the MiFID Org Regulation in its entirety. A firm to which provisions of the MiFID Org Regulation applies should refer to Commission Delegated Regulation (EU) 2017/565 as published in2 the electronic version of the Official Journal of the European Union and as amended by the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018.2
Where this sourcebook, or the rule in GEN 2.2.22AR, applies provisions of the MiFID Org Regulation as if they were rules, (2) applies to enable firms to correctly interpret and understand the application of those provisions.
In this sourcebook, a word or phrase found in a provision marked “UK”2 and referred to in column (1) of the table below has the meaning indicated in the corresponding row of column (2) of the table.
“client” and “potential client”
“conditions specified in Article 3(2)”
“distributing units in collective investment undertakings”
distributing units in a UCITS
client money that a firm receives or holds for, or on behalf of, a client in the course of, or in connection with, its MiFID business and (if the context requires) its equivalent business of a third country investment firm.
“investment firm” and “firm”
“investment service” and “investment services and activities”
“portfolio management” and “portfolio management service”
“professional client covered by Part 2 of Schedule 1 to Regulation (EU) No 600/2014”2
“professional client in accordance with Part 3 of Schedule 1 to Regulation (EU) No 600/2014”2
“Regulation (EU) No. 1286/2014”
In this sourcebook, where a reproduced provision of an article of the MiFID Org Regulation refers to another part of the MiFID Org Regulation, that other provision must also be read with reference to the table in (2).
In determining what constitutes the provision of information “in good time”, a firm should take into account, having regard to the urgency of the situation, the client’s need for sufficient time to read and understand the information before taking an investment decision.
A client is likely to require more time to review information given on a complex or unfamiliar product or service, or a product or service a client has no experience with, than a client considering a simpler or more familiar product or service, or where the client has relevant prior experience.
[Note: recital 83 of MiFID]
guidelines on certain aspects of the MiFID suitability requirements which also include guidelines on conduct of business obligations, 28 May 2018/ESMA35-43-869 (EN);2
guidelines on cross-selling practices, 11 July 2016/ESMA/2016/574 (EN)2; and