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12 February 2007

FESE response to consultation on passport under MiIFD





FESE issued its response on CESRs’consultation on the passport under MiFID and Inducements, particularly related to the crossborder activities of Multi-lateral Trading Facilities (MTFs). FESE is concerned that seeking to define remote access to an MTF on the basis of a specific set of technical arrangements would contradict Level 1 and potentially limit innovation and efficiency. CESR should rather consider applying a test focussing on whether or not the MTF provides specific arrangements that could allow users/participants established in another Member State to conclude transactions under its rules and/or its systems.

FESE also underlines the need to ensure consistency in the local rules applicable to MTFs and calls on CESR to ensure that notification procedures are equivalent and equally fast/efficient in all Member States.

Finally, in relation to the consultation on inducements, FESE agrees with the objectives pursued by CESR and agree that inducement policies should not reduce the firm’s duty to act in the best interests of the client. FESE recommends some flexibility in order to facilitate innovation and technological development in situations where there is only a remote risk that the client’s best interest could be impaired.

Fostering the global competitiveness of & promoting public recognition of European exchanges & providing a forum for debate on capital markets
www.fese.eu',WIDTH, 300, SHADOW, true, FADEIN, 300, FADEOUT, 300, STICKY, 1,DURATION,3500)" onmouseout="UnTip()");">FESE response MiFID Passport.pdf ' target='_blank'> Document


© Association of Consulting Actuaries


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