EU · MiFID II · TITLE II AUTHORISATION AND OPERATING CONDITIONS FOR INVESTMENT FIRMS · CHAPTER I Conditions and procedures for authorisation
Article 16a MiFID IIExemptions from product governance requirements
Exempts investment firms from the product governance requirements in Article 16(3) and Article 24(2) where the service relates to bonds whose only embedded derivative is a make-whole clause, or where instruments are marketed or distributed exclusively to eligible counterparties.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Directive (EU) 2021/338 | Provision inserted; Text inserted | by 28 Feb 2022 |
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredInferred · 95%
AI summaryOnly bonds whose sole embedded derivative is a make-whole clause, or instruments distributed exclusively to eligible counterparties, are exempt from MiFID II product governance under Article 16a; plain vanilla bonds and bonds with other embedded derivatives (with or without a make-whole clause) remain in scope, as ESMA's table shows.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA35-43-349, final version 15 December 2023) on MiFID II investor protection topics, including best execution, suitability, call recording, inducements and research, costs and charges, client categorisation, third-country firms and product governance. It is no longer updated; Q&As from 2024 are in ESMA's Q&A tool.
Commentary
No law-firm commentary is linked to this provision yet.
393 more documents relate to MiFID II as a whole without naming an article.
UK counterpart
UK transposition not traced in the FCA Handbook. It may sit in FSMA, the Regulated Activities Order or SI 2017/701, which are not yet mapped.
Version history
- From 28 Feb 2022
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.