MiFID II: Recent publications

1. 1. MiFID II implementation and CSSF Q&A

The Law of 30 May 2018 implementing the revised EU Markets in Financial Instruments regime (MiFID II) into Luxembourg law ("MiFID II Law") entered into force on 4 June 2018.

The MiFID II Law reflects the requirements of both the level 1 MiFID II Directive (Directive 2014/65/EU) and Regulation (Regulation (EU) 2014/600) and the level 2 MiFID II Directive (Directive (EU) 2017/593) and is divided into two parts. Part I includes a new law on markets in financial instruments, repealing the Law of 13 July 2007 on the same topic¹  and Part II amends the 1993 Law on the Financial Sector.

A Grand-Ducal regulation which implements the MiFID II requirements as regards safeguarding of financial instruments and funds belonging to clients, product governance, obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits also entered into force on 4 June 2018.

The key points of the new MiFID II regime are highlighted in the MiFID II dedicated Newsflash available on our website.

A Q&A on the application of MiFID II in Luxembourg is also available on the CSSF website. This Q&A is updated on a regular basis, the last time being in May 2018.

1. 2. ESMA publications

On 28 May 2018, ESMA published its final report on the Guidelines on certain aspects of the MiFID II suitability requirements in the context of investment firms²  which provide investment advice and/or portfolio management. Those Guidelines are now in the process of being translated into the official EU languages.

ESMA also updated its various Q&A on the application of MiFID II, including its  Q&A on MiFID II and MiFIR investor protection and intermediaries topics. The newly added questions and answers relate to client categorisation, inducements, provision of investment services and activities by third-country firms and the concept of ongoing relationship.