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Version date: 10 October 2016 - onwards

Question 1 Assessment and comparison of a sufficient range of financial instruments [Last update: 10 October 2016]

Art. 24(4) of MiFID II Art. 24(7) of MiFID II Art. 52 of the MiFID II Delegated Regulation Art. 53 of the MiFID II Delegated Regulation

Could a firm still hold itself out as being independent where it assesses and compares a sufficient range of financial instruments available (which are not limited to financial instruments issued or provided by the firm itself or by entities having close links) but that the outcome of such an assessment in a considerable number of cases is that the firm recommends financial instruments to its clients which are issued or provided by the firm itself or by entities having close links?

Answer 1

When a firm holding itself out as being independent frequently assesses financial instruments which are issued or provided by the firm itself or by entities having close links as best suited for its clients, ESMA considers this could potentially conflict its status as 'independent’.