Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 335

COVID-19 recovery: balance investor protection and compliance costs for firms

Posted by fidest press agency su domenica, 1 novembre 2020

Economic and Monetary Affairs MEPs adopted targeted changes for investment firms, granting EU companies access to a diverse range of funding and supporting the post-COVID-19 recovery. Targeted adjustments to the Markets in Financial Instruments Directive (MIFID II) aim to facilitate economic recovery by removing unnecessary administrative burdens while maintaining a balance between investor protection and compliance costs for firms. The changes apply mostly to professional clients and eligible counterparties such as insurers, pension funds, or public institutions.The changes adopted by the Economic and Monetary Affairs Committee on Wednesday evening include: • Information on costs and charges was suspended for professional clients except for investment advice and portfolio management. The suspension should also apply to eligible counterparties. • Ex-post information on costs and charges should be supplied without delay and clients should be able to receive such information over the phone prior to concluding a transaction. • Retail clients to receive information in digital format instead of on paper, but should be given at least 8 weeks notice and the choice to continue receiving information on paper or switch to digital format. • Certain product governance requirements will no longer apply to corporate bonds with “make-whole clauses” – which protect investors against losses in case an issuer opts for early repayment by guaranteeing them a payment equal to the net present value of the coupons. • Commodity derivatives: some changes to the position limits regime. MEPs also asked the Commission to present a proposal for a review of both the Market in Financial Instruments Directive (MIFID) and the Regulation (MIFIR) by 31 July 2021 at the latest. It should consider issues related to market structure, data, trading and post trading, research rules, rules on payment of inducements to advisors, the level of professional qualifications of advisers in Europe, client categorisation, and Brexit. The text was adopted with 26 votes to 12 and 18 abstentions.


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