Financial Supervision in the Interstices Between Private and Public Law

Svetiev, Yane; Ottow, Annetje

doi:10.1515/ercl-2014-0023

Cited by 15 publications

(2 citation statements)

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“…Her concern is that MiFID focuses on public enforcement of the investor protection rules and their maximum harmonisation so that the needs of the individual retail investor are not sufficiently served. Moreover, Svetiev and Ottow (2014) state that:…”

Section: Literature Review Investor Protection Provisionsmentioning

confidence: 99%

Implementation of MiFID II investor protection provisions by private banks within the European Union

Loonen

Janssen

2022

JFRC

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Purpose With the introduction of the Markets in Financial Instruments Directive (MiFID), financial institutions are faced with many investor protection provisions; this has a major impact on the day-to-day operations of private banks, which provide investment services to predominately retail or non-professional investors. The purpose of this paper is to determine how MiFID provisions regarding investor protection with respect to suitability are complied with in practice by private banks. Design/methodology/approach Based on interviews with 25 representatives of private banks from 10 different European Union (EU) member states, the researchers have determined how these provisions are fulfilled and associated risks mitigated. Mapping out the suitability requirements of MiFID and comparing them with how these have been operationalised, we arrive at the question of whether this leads to a level playing field and investor protection by different private banks. Findings Although MiFID is trying to achieve a level playing field between the EU member states, this study shows that this has not been achieved in all areas. Investor protection requirements from MiFID are interpreted and operationalised differently. Although these differences are sometimes small, sometimes they are larger and affect the way the investor is served and suitability determined. Originality/value This research provides a unique insight into the way private banks in Europe have implemented the MiFID II requirements and gives insight into best practices. For the future, this research can serve as a prelude to in-depth follow-up research on the implementation of EU provisions.

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Section: Literature Review Investor Protection Provisionsmentioning

confidence: 99%

Implementation of MiFID II investor protection provisions by private banks within the European Union

Loonen

Janssen

2022

JFRC

View full text Add to dashboard Cite

show abstract

“…In securities markets, where the complexity of the regulatory environment and the pace of innovation are greater than in banking, while the focus on conduct 'requires close proximity to market actors' , there is little sign that ESMA's efforts to promote supervisory convergence have reduced the NCAs' capacity for local experimentation (Moloney 2014a(Moloney : 989-92, 10032015: 535-7). A striking example is consumer protection, where recent research shows that national authorities are pursuing a variety of novel approaches to overseeing and intervening in firms' internal processes for developing and marketing new financial products (Svetiev and Ottow 2014).…”

Section: Financial Regulationmentioning

confidence: 99%