How has the implementation of MiFID affected the provisions relating to the selling of UCISs in the UK?
In addition to promoting a UCIS, if a MiFID or equivalent third country firm advises a client to buy, or receives and transmits orders to the manager/operator of the scheme, then the firm is likely to be carrying on MiFID or equivalent third country business and the MiFID client categorisation criteria apply to such business. This may mean that, if the firm receives an order from a client to acquire units of an UCIS such that it is receiving and transmitting orders within the meaning of MiFID10, then it would be necessary for the firm to use the MiFID-driven client categorisation approach, and to apply the COBS rules accordingly. It should also be noted that when a firm carries on “mixed business” (business involving both MiFID or equivalent third country business and other regulated activities subject to COBS) then the firm is required to use the MiFID-driven approach.11 A firm could, therefore, categorise a client as a ‘retail client’ for the purposes of its MiFID business but still
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- How has the implementation of MiFID affected the provisions relating to the promotion of UCISs in the UK?
- How has the implementation of MiFID affected the provisions relating to the selling of UCISs in the UK?
