The European Securities and Markets Authority has detected attempts by financial companies to “evade” the Mifid 2 regulation as a result of Brexit.
Although the European market regulator has not specified the nationality of these companies, it has indicated that the practices detected have been detected as a consequence of the end of the transition period with the United Kingdom, which ended on December 31.
Specifically, ESMA has indicated that it has detected “questionable practices” in relation to the reverse application, which occurs when a product or service is marketed at the sole initiative of the client.
“Some firms appear to be trying to evade Mifid 2 requirements by including general clauses in their commercial terms or by using ‘I accept’ drop-down boxes where clients ensure that any transaction is executed at the sole initiative of the client,” he said. the regulator alerted.
In this regard, ESMA has reminded companies that when a company from a third country requests clients in the European Union or promotes investment services there, they should not be considered as a service provided at the sole initiative of the client. This also applies even if there are contractual clauses stating otherwise.