Knowledge Base
Provide clients with clear, accurate, and non-misleading information
What is the essential characteristic of information provided to the client according to Article 44 of the MiFID II delegated regulation?
Article 44 defines four essential characteristics: accuracy, clarity, non-misleading nature and balance. These characteristics ensure that information is verified, comprehensible, balanced and does not hide the risks.
What is the amount of the fine imposed on Cougar Invest for misleading promotional information?
The 2025 Cougar Invest decision imposed a fine of 300,000 euros along with a permanent ban from practice for presenting complex EMTNs as 'low risk, high yield', thereby concealing the actual risks of these structured products.
What fine was imposed on Rallye for dissemination of false or misleading information?
The Rallye decision of 7 September 2023 imposed a fine of 25 million euros for dissemination of false or misleading information about the company's financial situation on eleven occasions between March 2018 and May 2019.
The distinction between promotional communication and regulatory information is optional under MiFID II.
AMF case law recalls that the distinction between promotional communication and regulatory information must be clear. This distinction is not optional but mandatory to comply with regulatory requirements.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Pre-contractual information obligations
Not required by MiFID II
Pre-contractual information obligations include the status of the institution, description of services, client categorisation, risks of financial instruments, costs and charges, and the conflicts of interest management policy. Other elements are not required by MiFID II.
Projections not based on objective data are acceptable if they are presented clearly.
Accuracy requires verified and sourced information. Projections not based on objective data are never acceptable, even if presented clearly. This is stipulated in Article 44 of the MiFID II delegated regulation.
Client Onboarding Document (Document d'Entrée en Relation - DER)
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The Client Onboarding Document (DER) is provided for under Articles 314-4 et seq. of the AMF General Regulation. It must specify the status and identity of the investment firm, its remuneration method, product selection criteria, client categorization, and information on professional liability insurance.
Client Onboarding Document (DER)
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The DER centralises pre-contractual information elements in compliance with regulatory requirements, including the status of the institution, services offered, client categorisation, risks of financial instruments, costs and charges, and the conflicts of interest management policy.
According to Article 24 of MiFID II, which elements must be included in the pre-contractual information provided to the client?
Article 24 of MiFID II requires that pre-contractual information includes the status and identity of the institution, the description of services offered, client categorisation, the characteristics and risks of financial instruments, costs and charges, and the conflicts of interest management policy. These elements are detailed in Articles 44 to 51 of Delegated Regulation 2017/565.