Requirement (MIFID)
Article 19 Conduct of business obligations when providing investment services
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Member States shall require that, when providing investment
services and/or, where appropriate, ancillary services to clients, an
investment firm act honestly, fairly and professionally in accordance
with the best interests of its clients and comply, in particular, with the
principles set out in paragraphs 2 to 8.
2. All information, including marketing communications, addressed
by the investment firm to clients or potential clients shall be fair, clear
and not misleading. Marketing communications shall be clearly identifiable
as such.
3. Appropriate information shall be provided in a comprehensible
form to clients or potential clients about:
— the investment firm and its services,
— financial instruments and proposed investment strategies; this should
include appropriate guidance on and warnings of the risks associated
with investments in those instruments or in respect of particular
investment strategies,
— execution venues, and
— costs and associated charges
so that they are reasonably able to understand the nature and risks of the
investment service and of the specific type of financial instrument that is
being offered and, consequently, to take investment decisions on an
informed basis. This information may be provided in a standardised
format.
Referenced requirement
Article 36 Assessment of appropriateness
Article 24 Investment research
Article 38 Provision of services in non-complex instruments
Article 30 Information about the investment firm and its services for retail clients and potential retail clients
Article 42 Additional reporting obligations for portfolio management or contingent liability transactions
Article 31 Information about financial instruments
Article 41 Reporting obligations in respect of portfolio management
Article 40 Reporting obligations in respect of execution of orders other than for portfolio management
Article 43 Statements of client financial instruments or client funds
Article 35 Assessment of suitability
Article 37 Provisions common to the assessment of suitability or appropriateness
Article 33 Information about costs and associated charges
Article 45 Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client
Article 44 Best execution criteria
Article 27 Conditions with which information must comply in order to be fair, clear and not misleading
Article 48 Aggregation and allocation of orders
Article 47 General principles
Article 28 Information concerning client categorisation
Article 34 Information drawn up in accordance with Directive 85/611/EEC
Article 29 General requirements for information to clients
Article 32 Information requirements concerning safeguarding of client financial instruments or client funds
Article 26 Inducements
Article 49 Aggregation and allocation of transactions for own account
Article 39 Retail client agreement