Article 4(1) MiFID II
‘Investment firm‘ means any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis.
Secondly, is an AIFM a MiFID investment firm?
MiFID investment firms (other than Exempt CAD firms).
In a private equity context, these are typically firms acting as an investment manager (but not an AIFM).
Also question is, what is MiFID II in simple terms?
In general, MiFID II relates to the framework of trading venues/structures in which financial instruments are traded. MiFIR is concerned with regulating the operation of these trading venues and the processes, systems and governance measures adopted by market participants.
What does MiFID II stand for?
Markets in Financial Instruments Directive (MiFID) … A new law, known as MiFID II, has since replaced MiFID. The EU hoped that the directive would help to increase competition amongst investment services while also boosting consumer protection and providing harmonious regulations for all participating states.
Does MiFID II apply to US firms?
The short answer, unfortunately, is “it depends”. Many of the new rules under MiFID II may impact US financial firms either directly or indirectly. … At present, MiFID II does not apply to investment managers who purely carry out collective portfolio management of Alternative Investment Funds (“AIF”) and UCITS.
Does MiFID II apply to UK?
Both MiFID II and MiFIR have been adopted locally by the UK, and the UK regulator, the Financial Conduct Authority, has played a key role in shaping European regulations. However, there are fears in the EU that the FCA will lighten the local rules to create a more competitive environment for UK firms.
Who is exempt from MiFID?
Yes, there is an exemption in article 2(1)(f) MiFID for persons providing investment services consisting exclusively in the administration of employee-participation schemes, for example employee share schemes and company pension schemes.
How will MiFID 2 affect asset management?
As MiFID II brings transparency on costs and charges, this in itself will bring competitiveness in the marketplace. On the sell-side, the erosion of mid-tier asset managers will continue. Fees will come under growing pressure. The impact will be felt slowly, but it will be felt.
What is a distributor under MiFID II?
• ‘distributor‘ means, taking into account Recital 15 and Article 10(1) of the MiFID II Delegated Directive, a firm that offers, recommends or sells an investment product and service to a client.
What are MiFID II activities?
MiFID II applies to investment firms, namely, “any legal person whose regular occupation or business is the provision of one of more investment services to third parties and/or the performance of one or more investment activities on a professional basis.” The relevant investment services and activities are those listed …
What is a MiFID license?
The form Licence application data reporting services providers MiFID II is intended for service providers who apply for a licence as data reporting services provider (DRSP). This is a new category of firms under MiFID II. This category is subdivided into APAs, ARMs and CTPs.
Is a Bipru firm a MiFID firm?
The new IFPR regime will increase the capital requirements of those MiFID investment firms that are currently categorised as BIPRU firms by the FCA. … As most BIPRU firms operate on an exclusively agency model, the fixed overheads requirement is usually the relevant variable capital requirement.