On 5 June 2020, the European Securities and Markets Authority (ESMA) published final guidelines on the MiFID II compliance function. The final guidelines replace the ESMA guidelines on the same topic issued in 2012 and include updates designed to enhance clarity and foster greater convergence in the implementation, and supervision, of the new MiFID II compliance function requirements.
The final guidelines apply to Member State competent authorities and the following financial market participants:
- Investment firms when carrying out investment services or investment activities or when selling or advising clients in relation to structured deposits.
- Credit institutions when carrying out investment services or investment activities or when selling or advising clients in relation to structured deposits.
- Undertakings for collective investment in transferable securities (UCITS) management companies when providing services referred to in Article 6(3) of the UCITS Directive, in accordance with Article 6(4) of that Directive.
- Alternative investment fund managers (AIFMs) when providing services referred to in Article 6(4) of the Alternative Investment Fund Managers Directive, in accordance with Article 6(6) of that Directive.
The guidelines will now be translated. The publication of the translations in all official languages of the EU will trigger a two-month period during which Member State national competent authorities must notify ESMA whether they comply or intend to comply with the guidelines.
