Stricto Sensu Investor Protection Under the 'MiFID II': A Systematic Overview of Articles 24-30

Abstract

This study is aiming to present (and to a certain extent analyse) the provisions of Articles 24-30 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 “on markets in financial instruments (…)” (‘MiFID II’) – including the relevant provisions of the delegated acts adopted by the Commission and the Guidelines adopted by the European Securities and Markets Authority (‘ESMA’) – which govern the stricto sensu investor protection of clients to whom credit institutions and investment firms are providing investment and ancillary services.

These Articles (and in particular Articles 24-25 and 27-28) contain ‘code of conduct rules’, which constitute one of the cornerstones in contemporary capital markets law and must (as MiFID II as a whole) be read in conjunction with Regulation (EU) No 600/2014 “on markets in financial instruments” of the same institutions and of the same date (‘MiFIR’).

Keywords: MiFID I, MiFID II, MiFIR, investment services, credit institutions, investment firms, duty to act honestly, best interests of clients, best execution, client order handling rules, manufacturing and distribution of products, inducements, executing orders, retail clients, suitability, appropriateness

JEL Classification: D31, E21, E22, E44, F29, F31, F32, G1, G21, G23, G24, G28, G31, G32, G34, H54, K22, K39, N24, O16