On 10 December 2019 the Dutch Authority for the Financial Markets (AFM) published a report with the results of its research into 10 investment firms and their compliance with the obligations under MiFID II1 with respect to (i) (ex-ante) cost transparency, (ii) product governance (for distributors) and (iii) (policy and procedures in place with respect to) inducements.
The scope of the research is limited to service provision to professional investors and eligible counterparties (ECPs) and is carried out in the period 3 January 2018 – beginning July 2018.
The report includes various observations of the AFM further to its research. Furthermore the AFM gives guidance as to the expectations of the AFM with respect to investment firms offering services to professional investors and ECPs in the abovementioned areas. Attached to the report is an overview which gives insight into the legal framework used by the AFM when conducting the research for the report.
The AFM notes in the report that it expects investment firms to implement improvements in their organisations on the basis of the findings set forth in the report. Therefore the guidance given by the AFM in this report is relevant for all investment firms offering services to professional investors and ECPs and also for AIFMD managers with a MiFID top-up.
1 Directive 2014/65/EU