EU · MiFID II · TITLE II AUTHORISATION AND OPERATING CONDITIONS FOR INVESTMENT FIRMS · CHAPTER II Operating conditions for investment firms · Section 1 General provisions
Article 23 MiFID IIConflicts of interest
Requires investment firms to take all appropriate steps to identify and prevent or manage conflicts of interest with or between clients, including those from inducements or the firm's own remuneration and incentives. Where arrangements are insufficient to prevent damage to clients, the firm must disclose the nature and sources of the conflict and mitigation steps in a durable medium, in enough detail for an informed decision, before acting; disclosure is a last resort.
Level 2: delegated and implementing acts
- Delegated actIn forceLegal basis
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredInferred · 80%
AI summaryA firm acting as the single liquidity provider on a regulated market or MTF may also operate a systematic internaliser only if the two activities are fully separated (management, staff, premises, execution systems and information barriers), because of the conflict from its privileged order-book access.
- Q&AAnsweredInferred · 70%
AI summaryFirms underwriting or placing must record allocation decisions at each material stage (allocation policy, agreed allocation by client type, each client's requests, later instructions and final allocations) and justify each investor's final allocation, with particular care for unusual ones.
- Q&AAnsweredInferred · 70%
AI summaryBefore accepting a mandate to manage an offering, a firm that advises on corporate finance and underwrites or places must tell the issuer about the targeted investors at least by type (for example horizon, size, nature and country), not necessarily individually, in line with its allocation policy and product governance duties.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA35-43-349, final version 15 December 2023) on MiFID II investor protection topics, including best execution, suitability, call recording, inducements and research, costs and charges, client categorisation, third-country firms and product governance. It is no longer updated; Q&As from 2024 are in ESMA's Q&A tool.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA70-872942901-38, final version 13 October 2023) on market structure topics, covering data disaggregation, direct electronic access and algorithmic trading, the tick size regime, multilateral and bilateral systems (including OTFs and systematic internalisers) and access to CCPs and trading venues. It is no longer updated; later Q&As are in ESMA's Q&A tool.
Commentary
No law-firm commentary is linked to this provision yet.
393 more documents relate to MiFID II as a whole without naming an article.
UK counterpart
- SYSC 10.1.3R · Identifying conflictsEquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). SYSC 10.1.3R transposes the article, so the wording differs.
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Version history
- From 17 Sept 2014
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.