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Version date: 3 October 2017 - onwards

Question 18 Eligible counterparties not intending to offer financial instruments to clients [Last update: 3 October 2017]

Art. 24 of MiFID II Art. 50(1) of the MiFID II Delegated Regulation

How should an investment firm assess, in accordance with Article 50(1) paragraph 3 of the MiFID II Delegated Regulation, that an eligible counterparty does not intend to offer the financial instruments to its clients?

Answer 18

Without prejudice to the obligations set out in Article 24(4) MiFID II and the requirement to provide information on all costs and charges to all clients and potential clients, investment firms providing investment services to eligible counterparties shall have the right - in accordance with Article 50 of the MiFID II Delegated Regulation - to agree to a limited application of the detailed requirements set out in Article 50, except when, irrespective of the investment service provided, the financial instruments concerned embed a derivative and the eligible counterparty intends to offer them to its clients.

Investment firms are expected to apply the full cost and charges disclosure regime as th

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