Last chance for Member States to support EU citizens as investors and finally ban Payment for Order Flow (PFOF)

Date: 30th May 2022
Type: Press Releases

Member States have until 31 May to actively support transparent, efficient, and accessible equity markets for retail investors and submit their written comments to the French Presidency working on the Compromise Proposal for the review of MIFIR regulation. In order to avoid a poor compromise, national policymakers should put consumer interests first and remember the European Union’s Markets in Financial Instruments Directive (MiFID II) requirements for investment firms to act “honestly, fairly, and professionally in accordance with the best interests of clients” when providing investment services. MiFID II further stipulates that the receipt of an “inducement” (commission, rebate, fee or other monetary benefit) by an investment firm can lead to a situation in which the firm would not be acting in the best interest of its client.