Q&A · ESMA

Inducements

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

Money in a research payment account belongs to the investment firm once charged to clients, but must be controlled by the firm and used only to buy research for clients; it becomes client money only when rebated, and the firm should align charges with research spending and keep control if administration is outsourced.

Details

Reference	ESMA_QA_1790
Issuer	ESMA
Published	16 Dec 2016
Answered	16 Dec 2016
Submitted	16 Dec 2016
ESMA topics	Inducements (research)
Earlier Q&A document	ESMA 35-43-349 MiFID II Q&As on Investment protection Ch. 7, question 2

Provisions it relates to

Article 24 MiFID II · General principles and information to clients
MiFID II
Inferred · 85%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference · 90%
Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe MiFID II Delegated Directive on safeguarding client financial instruments and funds (deposits, use of client assets, title transfer collateral, a single officer responsible, auditor reports), product governance duties for manufacturers and distributors, and inducements, including rules for independent advice, portfolio management and research. Since amended, including by Delegated Directives 2021/1269 (sustainability) and 2026/374 (research payment).