Updated: October 2019
In our opinion, reforming MiFID II should be a key priority for the new European Commission. ESBG would
encourage a well-thought review of MiFID II taking into account the issues stated above in order to eliminate
the challenges that are counterproductive and do not increase investor protection.
EBSG would suggest to include a further category, between professional investors and retail investors, for
people who are not professionals, but trade very frequently within a certain reference period. A separate,
adjusted set of rules would probably make sense
for both sides to facilitate the trading experience
while ensuring a reasonable level of investor
protection. These investors may not need dozens
of pages containing the exact same information
on a very regular basis (i.e. every time that they
are active on the markets).
We would recommend also reviewing the
requirement to record all telephone conversations
taking into account the downside effects on
customers experienced by ESBG members.
We would suggest that clients should have the
option to waive voice recording.
ESBG identified several issues in the
implementation of MiFID II:
ESBG Members have experienced that customers
feel overwhelmed and confused by the excess
of information. Many investors want to decide
for themselves if they wish to do without certain
information (such as constantly repetitive
information on costs) or receive information after -
wards (following telephone orders, for instance).
ESBG is not fully convinced that the current set of
rules gives the right incentives for retail investors
to consider investing their money in the markets
(and providing the real economy with financing
thereby). Quite to the contrary, many clients have
already (partly or complete) withdrawn from capital
markets. This is a very alarming development as
the investment in financial instruments is a very
important aspect of private retirement arrangements
(especially in times when interest rates are
Moreover, ESBG Members are facing high cost of
compliance in order to meet MiFID II and KID
PRIIPs requirements. This would have a great
impact on the financial advice services provided
by local savings and retail banks.
In June 2014, the European Commission adopted new rules revising the Markets in Financial Instruments
Directive (MiFID) framework. These consist of a directive (MiFID II) and a regulation (MiFIR).
MiFID II aims to reinforce the rules on securities markets by ensuring that organised trading takes place on
regulated platforms, introducing rules on algorithmic and high frequency trading, improving the transparency
and oversight of financial markets including derivatives markets and enhancing investor protection. MiFID II
and MiFIR became applicable as from 3 January 2018. The European Commission, taking into consideration
ESMA’s advice, should issue a review of the implementation of the MiFID II by March 2020.