12 December, 2017
From 3 January 2018, EEA Member States will need to apply new product governance rules under the revised Markets in Financial Instruments Directive (MiFID II).
The new rules introduce product governance obligations on investment firms who are established in the European Economic Area (EEA) and subject to MiFID II (MiFID Firms) when they manufacture or distribute financial instruments (and structured deposits, although not the focus of this note).
Financial instruments include, but are not limited to, shares, bonds and derivative instruments. Although the new product governance rules only apply to MiFID Firms, non-MiFID Firms (typically, these would be the local banks and securities houses in Asia) will be indirectly impacted:
- when doing business with MiFID Firms (e.g. where financial instruments are to be sold within the EEA) or
- distributing financial instruments (both within and outside the EEA) manufactured by MiFID Firms.
Read more on the full Practical considerations for Asia-based DCM practitioners in the eurobond market.
For the full report, please click here.
For further information, please contact:
William Liu , Partner, Linklaters
william.liu@linklaters.com
