Markets in Financial Instruments Directive (MiFID) article 51(3)

Markets in Financial Instruments Directive (MiFID) article 51(3) is a European Union law that provides harmonised regulation for investment services across the 31 member states of the European Economic Area. The main objectives of the Directive are to increase competition and consumer protection in investment services.

If a firm performs investment services and activities, it is subject to MiFID in respect both of these and also of ancillary services (and it can use the MiFID passport to provide them to member states other than its home state). However if a firm only performs ancillary services, it is not subject to MiFID (but nor can it benefit from the MiFID passport).

MiFID covers almost all tradable financial products with the exception of certain foreign exchange trades. This includes commodity and other derivatives such as freight, climate and carbon derivatives, which were not covered by ISD.

MiFID article 51(3) establishes that competent authorities shall draw up and maintain a list of the minimum records investment firms are required to keep under MiFID and its implementing measures. The list of minimum records to be kept includes the following communications items:

  • Marketing communications (except in oral forms)
  • The firm’s business internal communications — includes Records provided for under Art. 5 (1)f of On the business and organization
  • Firm’s Compliance procedures
  • Complaints records
  • Complaints handling
  • Records of prices quoted by systematic internalisers
  • Records of personal transactions
  • Record of the information disclosed to clients regarding inducements
  • Investment advice to retail clients

For more information:

Smarsh, Inc. assumes no liability for the accuracy or completeness of this information. Please consult with an attorney for specific information on specific rules and regulations and how they apply to your business.

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