MiFID II: Inducements and Marketing Commissions

Thomson Reuters
January 31, 2018

Sean Donovan-Smith, London Partner and a member of the Investment Adviser and Alternative Funds section of the Private Equity and Venture Capital Practice Group, authored an article examining the application of the recast EU Markets in Financial Instruments Directive (MiFID II) to marketing commissions. The MiFID II requirements, which went into effect in the UK and other EU member states on January 3, 2018, and applies to all firms authorized as “MiFID investment firms.”

Donovan-Smith identifies the background of MiFID II and its provisions in respect of inducements (“soft commissions”) and marketing commissions, aspects of the Financial Conduct Authority’s implementation of the inducements regime, as well as the applicability of the MiFID II inducement rules to payments of commission for marketing and distribution services. To read the full article, click here.