ESMA Issues Public Statement On Third-country Firms Marketing In The EU

The European Securities and Markets Authority ('ESMA') has, on the 13^th January 2021, issued a public statement to remind firms of the MiFID II requirements on the provision of investment services to retail and professional clients by third country investment firms.

According to MiFID II, a third country firm may provide investment services to EU-based retail or professional clients without the requirement to establish a branch within the EU, where the service is being sought by the client at its own exclusive initiative. ESMA has noted some questionable practices following the end of the UK transition period on the 31^st December 2020, such as the inclusion of general clauses in their terms of business or through the use of online pop-up "I agree" boxes whereby clients state that any transaction is executed on the exclusive initiative of the client.