Implementation of MiFID II investor protection provisions by private banks within the European Union

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Series Details Volume 31, Number 1, Pages 1-15
Publication Date 2023
ISSN 1358-1988
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Abstract:

With the introduction of the Markets in Financial Instruments Directive (MiFID), financial institutions are faced with many investor protection provisions; this has a major impact on the day-to-day operations of private banks, which provide investment services to predominately retail or non-professional investors. The purpose of this paper is to determine how MiFID provisions regarding investor protection with respect to suitability are complied with in practice by private banks.

Although MiFID is trying to achieve a level playing field between the EU member states, this study shows that this has not been achieved in all areas. Investor protection requirements from MiFID are interpreted and operationalised differently. Although these differences are sometimes small, sometimes they are larger and affect the way the investor is served and suitability determined.
Source Link https://doi.org/10.1108/JFRC-10-2021-0087
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