The European Commission (EC) is proposing to abolish execution-only services for non-complex financial products to eliminate uncertainty on which ones qualify as 'simple'.
Under the Markets in Financial Instruments Directive (MiFID), investment firms can provide investors with a way to buy and sell certain financial instruments without any assessment of the appropriateness of the given product. These "execution-only" services are only available when certain conditions are fulfilled, namely when it involves so-called non-complex financial instruments. But in today's consultation paper the EC says it is aware of a degree of uncertainty on what can qualify as a non-complex product and on the services that can be covered by this regime. "In the light of ...
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