Market developments raised the question of whether parts of MiFID should be considered for review, CESR notes. The paper suggests areas where questions may particularly arise, but also investigates the desirability of a general review of the MiFID.
Market developments have inevitably raised the question of whether parts of MiFID should be considered for review, CESR notes. Market conditions have altered the risk profile of many financial instruments, at least temporarily, occasionally making the investment risks associated with financial instruments less apparent to investors.
CESR does not attempt to provide a comprehensive and exhaustive list of how each type of financial instrument should be categorised. However, the consultation aims to provide analysis, views and examples concerning how particular types of financial instruments might fail to be treated under the MiFID distinctions.
The consultation paper suggests some areas where questions may particularly arise, but also investigates the desirability of a general review of the MiFID treatment of financial instruments for the purpose of the appropriateness requirements more generally.
In addition, the paper highlights some specific issues of interpretation that arise from the way in which the list of instruments in MiFID Art.19(6) (and the associated Level 2 Directive) is drafted, and suggests how these issues may best be addressed.
CESR will publish a final paper during the autumn of 2009.
Deadline for contributions is 17 July 2009.
The consultation document is attached below.
© CESR - Committee of European Securities Regulators
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