Client Protection on European Financial Markets – From Inform Your Client to Know Your Product and Beyond: An Assessment of the PRIIPs Regulation, MiFID II/MiFIR and IMD 2

Revue Trimestrielle de Droit Financier (Autumn 2014)

20 Pages Posted: 12 Sep 2014 Last revised: 15 Sep 2014

See all articles by Gaetane Schaeken Willemaers

Gaetane Schaeken Willemaers

Research Centre for Social and Economic Law (CRIDES) of the University of Louvain (Belgium)

Date Written: July 1, 2014

Abstract

This article aims at assessing some of the most recent developments in European law which are said to improve clients’ protection buying on European financial markets. It focuses on (1) provisions relating to pre-contractual and marketing information obligations, and related liability, supervision and sanction regimes, (2) developments in product governance arrangements which are meant to reduce potential risks of failure to comply with investor protection rules and on (3) ‘product intervention powers’ of supervisory authorities, considered as the last resort measure for investor protection purposes. This article is concerned with financial products that have an investment element, including investment-based insurance products (“IBI products”). The author also stresses that appropriate rules should go hand in hand with a change of culture to bring back ethos at manufacturers’ and distributors’. Not only the letter of the rules but more fundamentally the spirit of the rules should be complied with at each level of the distribution chain. Only that combination will bring back investors’ confidence for the long-term.

Keywords: financial markets regulations, investor protection, client protection, MiFID II, PRIIPs Regulation, MiFIR, IMD 2, product governance, product intervention

JEL Classification: K22

Suggested Citation

Schaeken Willemaers, Gaetane, Client Protection on European Financial Markets – From Inform Your Client to Know Your Product and Beyond: An Assessment of the PRIIPs Regulation, MiFID II/MiFIR and IMD 2 (July 1, 2014). Revue Trimestrielle de Droit Financier (Autumn 2014), Available at SSRN: https://ssrn.com/abstract=2494842

Gaetane Schaeken Willemaers (Contact Author)

Research Centre for Social and Economic Law (CRIDES) of the University of Louvain (Belgium) ( email )

Collège Thomas More
2 Place Montesquieu
Louvain-la-Neuve, 1348
Belgium

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