Part II Investment Firms and Investment Services, 7 Conflicts of Interest

Subject(s):

Conduct of business regulation — Enforcement — Investment business — Regulated activities — Supervision

This chapter discusses conflicts of interest in services regulated by MiFID, mainly with respect to the MiFID II regime, but taking the abundantly discussed MiFID I regime as a background, because the basic structure and many single solutions remain broadly unchanged. It combines legal and social science theories with an analysis of substantive law solutions and presents them with an evolutionary perspective, focusing on detailed analysis of the new regime. It first exposes the foundations—the most important theoretical approaches to a regulation of conflicts of interest and the legislative bases and history—and then proceeds to analyse the five different stages and situations step by step. It begins by characterizing the type of approach taken in the legislative regime, then moving to the main features of innovation in the transition from MiFID I to MiFID II, and finally discussing in greater detail the substantive solution found in MiFID II.