Part II Investment Firms and Investment Services, 4 The Overarching Duty to Act in the Best Interest of the Client in MiFID II
Luca Enriques, Matteo Gargantini
Edited By: Danny Busch, Guido Ferrarini
- Conduct of business regulation — Enforcement — Investment business — Market abuse — Regulated activities — Supervision
This chapter analyses the scope, contents, and implications of MiFID II’s new framework as regards the duty to act in client’s best interest. It considers the duty as an autonomous source of obligations for investment firms and as a guidance principle for both EU bodies in charge of implementing MiFID II and judges and supervisory authorities interpreting more specific duties. It also discusses the implications of extending the duty to intrinsically at arm’s length activities such as dealing on own account and self-placement.