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CESR issued today a consultation paper on inducements for which the Markets in Financial Instruments Directive (MiFID) sets out requirements for the receipt or provision by an investment firm of a fee, commission or non-monetary benefit.
The purpose of this consultation is to highlight some of the observed industry practices on the MiFID inducements rules and to provide investment firms with an understanding of how CESR views such practices. Throughout the consultation paper CESR has indicated what types of firm behaviour European securities regulators encourage and discourage.
This is expected to provide firms with a benchmark against industry compliance with the MiFID inducements rules, with the additional comfort of knowing whether European securities regulators encourage or discourage particular instances of firm behaviour.
The consultation is open until December 22.
