backOn May 24, 2023, the EU Commission published its draft directive on the Retail Investment Package, thus launching MiFID III:
An inducement ban (limited by certain exceptions) shall be introduced for non-advisory business with private clients. To the extent that inducements may still be paid/received in private banking, the current requirement for quality enhancement shall be replaced by a new concept. In parallel, a (possibly optional) ban on payments for order flow is planned as part of the MiFIR revision.
Additionally, other extensive changes are planned, regarding, among other things, cost transparency, the appropriateness test, product governance, the upgrading of private clients to professional clients ("designated" professional clients) and marketing communications.
We look forward to discussing these issues in our virtual Talk im Turm event.
Please contact afritz@kslaw.com if you have any questions.