The European Securities and Markets Authority (ESMA), issued yesterday a public statement, aimed at reminding firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. Additionally, it highlighted key MiFID II obligations aimed at ensuring firms act in their clients’ best interest when executing their orders.
According to ESMA, in most cases, it is unlikely that the receipt of PFOF by firms from third parties would be compatible with MiFID II and addresses specific concerns regarding certain practices by zero-commission brokers.
How can Complyport EU (formerly MAP S.Platis) assist you?
Our team of experts can offer you the following services:
- Compliance health-check reviews;
- Advice on policies, controls and procedures relevant to Best Execution and Inducements;
- Develop a tailored and practical action plan for compliance;
- Provide answers to queries (Q&A service);
- Training and education on regulatory requirements.
Contact us for more information on how we may assist you.
