Wednesday February 25 2015

News Source: Global Exchanges

Focus: MiFID (Global Exchanges)

Type: General




The European Securities and Markets Authority (ESMA) has conducted review on how national regulators supervise and enforce the MiFID provisions relating to investment firms’ obligation to provide best execution, or obtain the best possible result, for their clients when executing their orders.

The outcome of the review found that the level of implementation of best execution provisions, and the level of convergence of supervisory practices by NCAs, is relatively low. A number of improvements have been identified in order to address these issues:

  • prioritization of best execution as a key conduct of business supervisory issue;
  • the allocation of sufficient resources to best execution supervision; and
  • a more proactive supervisory approach to monitoring compliance with best execution requirements, both desk-based and onsite inspections.

The review was conducted on the basis of information provided by 29 NCAs and complemented by on-site visits to the NCAs of France, Liechtenstein, Luxembourg, Malta, Poland and Spain.

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