Requirement (MIFID)
Article 21 Conflicts of interest potentially detrimental to a client
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
Member States shall ensure that, for the purposes of identifying
the types of conflict of interest that arise in the course of
providing investment and ancillary services or a combination
thereof and whose existence may damage the interests of a client,
investment firms take into account, by way of minimum criteria,
the question of whether the investment firm or a relevant person,
or a person directly or indirectly linked by control to the firm, is
in any of the following situations, whether as a result of
providing investment or ancillary services or investment
activities or otherwise:
(a) the firm or that person is likely to make a financial gain, or
avoid a financial loss, at the expense of the client;
(b) the firm or that person has an interest in the outcome of a
service provided to the client or of a transaction carried out
on behalf of the client, which is distinct from the client's
interest in that outcome;
(c) the firm or that person has a financial or other incentive to
favour the interest of another client or group of clients over
the interests of the client;
(d) the firm or that person carries on the same business as the
client;
(e) the firm or that person receives or will receive from a
person other than the client an inducement in relation to a
service provided to the client, in the form of monies, goods
or services, other than the standard commission or fee for
that service.
Comment
Applies to Articles 13(3) and 18 of Directive 2004/39/EC