How should investment firms providing the investment service of portfolio management treat inducements received after 3 January 2018 with regards to financial instruments in which the firm has invested on behalf of the client before that date?
Answer 6
According to Article 24(8) of MiFID II, investment firms providing the investment service of portfolio management shall not accept and retain fees, commissions or any monetary or non-monetary benefits paid or provided by any third party (or a person acting on behalf of a third party) in relation to the provision of such an investment service to clients.
These requirements apply not only to any fee, commission or monetary or non-monetary benefit received by a portfolio manager in relation to investments in ‘new’ instruments undertaken from 3 January 2018 onward, but also with respect to any ongoing inducement the firm may be receiving in relation to financial instruments in which the firm has invested on behal
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