MiFID II and Inducements: A Copernican Revolution in the Investment Services Ecosystem? Speculative Thoughts on the Inducements Regime After Two Years From MiFID II Introduction in the Light of the Recent ESMA Technical Advice

Abstract

The paper sheds light on MiFID II inducements regime and its application after two years from the entry into force of MiFID II. In this respect, the Authors analyse not only the regulatory framework applicable to inducements and investment firms but provide also a pragmatic overview on the extent to which such regime may impact the business model of both investment firms and asset managers. Ultimately, an overview on the recent ESMA Technical Advice on inducements disclosure is provided.

As a conclusive remark, the Authors raise some interrogatives about the potential of FinTech and RegTech solutions for optimizing the current conflict of interests framework within the investment services industry.

Keywords: MiFID II, inducements, asset management, investment firms, FinTech, RegTech, Investment Funds, ESMA

JEL Classification: K22, O16, G28, G38