Definitions Flashcards
What is the definition of an Investment Firm according to MiFID II?
legal person whose regular occupation is the provision investment services to third parties and/or the performance of one or more investment activities on a professional basis.
Can non-legal persons be considered as investment firms under MiFID II?
Yes, if legal status gives
(1) equivalent protection to 3P and
(2) equivalent prudential supervision.
Which entities can provide investment services under MiFID II?
With Authorization
* Investment firms
* Banks (investment banking)
* Collective asset managers
Definition of Investment Services
professional activities that are the (1) regular occupation and (2) relate to financial instruments
Financial Instruments
- Transferable securities
*Shares in companies - Securitised debt (bonds)
- Money-market instruments
- Units in collective investment schemes (UCITS; AIF)
- Emission allowances under Emissions Trading Scheme
- Derivatives
*Blockchain investment Assets
(Structured are not FI but MiFID rules on COB, COI and product governance applies
Financial Services
*Transactional (Execution) Services
*Fiduciary Services
*Ancillary Services
Transactional Services
- Reception/Transmission of Orders
- Execution of orders on behalf of clients
- Dealing on own account
Fiduciary Services
*Investment Advice
*Portfolio Management
Ancillary Services
*Safekeeping of FI
*granting loan so investor can cary out transaction
*Advice on capital structure/industrial strategy
*Foreign exchange services
*Investment research/financial services
Impact of the regulatory taxonomy of FS on IS
Investment services are restricted activities subject to COB and other rules while facilitating X-border exercise
What is the impact of regulator taxonomy for FS on AS
Does not restrict the activity BUT sets out the requirements for IF to perform them (including authorization)
What does the execution of orders on behalf of clients entail?
Acting to conclude agreements to buy/sell financial instruments on behalf of clients.
What is investment advice under MiFID II?
The provision of personal recommendations to a client regarding transactions relating to financial instruments.
What are ancillary services in the context of MiFID II?
- Safekeeping and administration of financial instruments
- Granting loans for transactions in financial instruments
- Advice on capital structure or industrial strategy
- Foreign exchange services connected to investment services
- Investment research and financial analysis
