Q&A · ESMA

Inducements

Answered

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AI-generated Summary

To meet the quality-enhancement test in Article 11(2)(a) of the MiFID II Delegated Directive, an inducement must fund an additional or higher-level service that goes beyond what is legally required, is provided to the client concerned and is proportionate to the inducements received; ESMA gives examples and stresses a case-by-case assessment.

Details

Reference	ESMA_QA_1121
Issuer	ESMA
Published	31 Mar 2021
Answered	31 Mar 2021
Submitted	31 Mar 2021
ESMA topics	Inducements
Earlier Q&A document	ESMA 35-43-439 Investor protection Inducements Q&A 8

Provisions it relates to

Article 24 MiFID II · General principles and information to clients
MiFID II
Inferred · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference · 90%
Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe MiFID II Delegated Directive on safeguarding client financial instruments and funds (deposits, use of client assets, title transfer collateral, a single officer responsible, auditor reports), product governance duties for manufacturers and distributors, and inducements, including rules for independent advice, portfolio management and research. Since amended, including by Delegated Directives 2021/1269 (sustainability) and 2026/374 (research payment).