On 3 October 2018, the European Securities and Markets Authority (ESMA) updated its Q&As on investor protection topics under MiFID II and MiFIR.

ESMA provides answers to the following new questions which appear on pages 28 and 48 respectively:

  • In some instances, investment firms use the request for quote (RFQ) system of a trading venue that allow firms to identify and select the different counterparties they wish to obtain quotes from, before concluding the trade with the selected counterparty on that trading venue’s RFQ system. Where an investment firm agrees a trade via such systems, should it identify the counterparty with whom the transaction was agreed with or the trading venue used to ultimately conclude the transaction for its Regulatory Technical Standard 28 reporting?
  • An investment firm only offers financial instruments issued or provided by the investment firm itself or by entities having close links with the investment firm. On a look-through basis, the financial instruments offered (for example, investment funds, wrappers) allow the investor to indirectly invest in financial instruments issued by entities who do not have close links with the investment firm. Can such an investment firm hold itself out as providing investment advice on an independent basis?