ESMA · ESMA_QA_1133 Answer Published

MiFID practices for firms selling financial instruments subject to the BRRD resolution regime

Name: MiFID practices for firms selling financial instruments subject to the BRRD resolution regime: ESMA Q&A — EU Financial Regulatory Q&A
Creator: European Securities and Markets Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries
Topic: Information to clients on topics other than costs and charges
Submitted: 2020-02-18
Answered: 2020-02-18

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Question

Is the seller required to monitor compliance of his client’s portfolio with the 10% threshold referred to in point (a) of Article 44a(2) on an ongoing basis, for example whenever portfolio composition is affected by disinvestments?

Answer

[ESMA 35-43-439 Investor protection BRRD Q&A 6] The 10% test is only required to be performed by the seller upon the purchase of a SEL issued as of 28 December 2020. Any other transaction or event involving the client’s portfolio (e.g. a divestment or a change in market values) does not trigger the obligation of point (a) of Article 44a(2).

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