The effectiveness of MiFID provisions for professional clients: a critical review

Tom Loonen and Randy Pattiselanno

Journal of Financial Regulation and Compliance, 2019, vol. 28, issue 1, 1-15

Abstract: Purpose - This paper aims to identify the duty of care that applies to ‘professionally classified clients’ based on the recently implemented Markets in Financial Instruments Directive II (MiFID II) as well as the previous Markets in Financial Instruments Directive I (MiFID I). The authors place critical notes on the effectiveness of some MiFID provisions. Design/methodology/approach - The authors have reviewed the Delegated Acts of MiFID I and II, as well as Q&A’s of the European Regulator, ESMA and jurisprudence. The authors aim to add value by facilitating a discussion on the effectiveness of applicable MiFID provisions. Findings - This review of the legal provisions provides researchers and practitioners in the investment sectors with a clear overview of the legal provisions detailing how these provisions should be met and how improvements to the provisions can be achieved. Practical implications - This paper specifies what the provisions for professional classified clients are and facilitates a discussion on the effectiveness of these provisions. Originality/value - Addressing the legal provisions which are applicable to ‘professional classified clients’ that derive from MiFID I and II and includes a critical analysis which offers an original perspective.

Keywords: Effectiveness; Duty of care; Professional; MiFID II; Banking regulation; Investor (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:jfrc-07-2018-0103

DOI: 10.1108/JFRC-07-2018-0103

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