Requirement (MIFID)
Article 46 Execution policy
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. Member States shall ensure that investment firms review
annually the execution policy established pursuant to
Article 21(2) of Directive 2004/39/EC, as well as their order
execution arrangements.
Such a review shall also be carried out whenever a material
change occurs that affects the firm's ability to continue to obtain
the best possible result for the execution of its client orders on a
consistent basis using the venues included in its execution policy.
2. Investment firms shall provide retail clients with the
following details on their execution policy in good time prior
to the provision of the service:
(a) an account of the relative importance the investment firm
assigns, in accordance with the criteria specified in
Article 44(1), to the factors referred to in Article 21(1) of
Directive 2004/39/EC, or the process by which the firm
determines the relative importance of those factors;
(b) a list of the execution venues on which the firm places
significant reliance in meeting its obligation to take all
reasonable steps to obtain on a consistent basis the best
possible result for the execution of client orders;
(c) a clear and prominent warning that any specific instructions
from a client may prevent the firm from taking the
steps that it has designed and implemented in its execution
policy to obtain the best possible result for the execution of
those orders in respect of the elements covered by those
instructions.
That information shall be provided in a durable medium, or by
means of a website (where that does not constitute a durable
medium) provided that the conditions specified in Article 3(2)
are satisfied.
Comment
Applies to Article 21(3) and (4) of Directive 2004/39/EC