The Law of 30 May 2018 implementing the revised EU Markets in Financial Instruments regime (MiFID II) into Luxembourg law ("MiFID II Law") entered into force on 4 June 2018. The key points of the new MiFID II regime are highlighted in the MiFID II dedicated Newsflash available on our website.

ESMA has also recently published its final report on the Guidelines on certain aspects of the MiFID II suitability requirements and updated its various Q&A on the application of MiFID II, including its Q&A on MiFID II and MiFIR investor protection and intermediaries topics. The newly added questions and answers relate to client categorisation, inducements, provision of investment services and activities by third-country firms and the concept of ongoing relationship.

As a reminder, investment funds and their AIFMs/UCITS management companies are out of scope of MiFID II. They are not directly subject to any MiFID II requirements for their service of collective investment management. However, they will be indirectly affected by MiFID II when they rely on MiFID entities for the provision of MiFID services, e.g. distribution, portfolio management, brokerage, (...) or where MiFID entities provide investment services in relation to investment funds to the clients of the funds (e.g. reception, transmission of orders).

AIFMs and UCITS management companies will also be directly affected if they have an extended licence to provide certain MiFID services. In this case, they will have to comply with specific MiFID II requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.