The European Securities and Markets Authority has updated its set of questions and answers that serve as a guide to the implementation of investor protection measures in accordance with the EU's Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).

The Q&As on MiFID II and MiFIR investor protection and intermediaries topics provide new answers to do with 'best execution,' i.e. reporting for firms using a venue’s request-for-quote or RFQ system to agree a trade; and with investment advice on an independent basis, taking a ‘look-through’ approach.

ESMA's Q&As outline the super-regulator's interpretation of the rules that govern the following topics: best execution; suitability and 'appropriateness'; the recording of telephone conversations and electronic communications; post-sale reporting; recordkeeping; investment advice on an independent basis; inducements (research); information on charges and costs; underwriting and placement of a financial instrument; client categorisation; inducements; provision of investment services and activities by third country firms; the application of MiFID II after 'D Day' occurred on 3 January this year, including issues of late transposition; and other issues.

The purpose of this Q&A is to promote the same supervisory practices all over the EU. ESMA will continue to develop this Q&A on investor protection topics under MiFID II and MiFIR, both adding questions and answers to the topics already covered and introducing new sections for other MiFID II investor protection areas not yet addressed.

ESMA's offices are in Paris, the city to which the EU is moving the European Banking Authority from London.