Requirement (MIFID)
Article 18 Conflicts of interest
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Member States shall require investment firms to take all reasonable
steps to identify conflicts of interest between themselves, including their
managers, employees and tied agents, or any person directly or indirectly
linked to them by control and their clients or between one client
and another that arise in the course of providing any investment and
ancillary services, or combinations thereof.
2. Where organisational or administrative arrangements made by the
investment firm in accordance with Article 13(3) to manage conflicts of
interest are not sufficient to ensure, with reasonable confidence, that
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risks of damage to client interests will be prevented, the investment firm
shall clearly disclose the general nature and/or sources of conflicts of
interest to the client before undertaking business on its behalf.
3. In order to take account of technical developments on financial
markets and to ensure uniform application of paragraphs 1 and 2, the
Commission shall adopt, in accordance with the procedure referred to in
Article 64(2), implementing measures to:
(a) define the steps that investment firms might reasonably be expected
to take to identify, prevent, manage and/or disclose conflicts of
interest when providing various investment and ancillary services
and combinations thereof;
(b) establish appropriate criteria for determining the types of conflict of
interest whose existence may damage the interests of the clients or
potential clients of the investment firm.
Referenced requirement
Article 21 Conflicts of interest potentially detrimental to a client
Article 22 Conflicts of interest policy