MFA Submits Comments to ESMA Regarding MiFID Compliance Requirements

MFA submitted comments to the European Securities Markets Authority on its consultation paper on Guidelines on certain aspects of the MiFID compliance function requirements. In our letter, we highlighted that: (i) In the case of an investment firm which is part of a corporate group, it may be appropriate to have a centralized compliance function situated within another group entity; (ii) Compliance officers should not be required to have formal compliance or legal qualifications, provided that they have a good knowledge of the regulatory system combined with a thorough understanding of the business carried out by their investment firm gained through relevant experience. This is particularly important in the context of a corporate group with a centralized compliance function where the chief compliance officer for the group may be based in a jurisdiction outside of the EU; (iii) It should be left to the investment firms discretion to decide which types of functions may be combined with the compliance function; and (iv) ESMA should clarify which types of external compliance services may amount to outsourcing of the compliance function.

Downloads