Product governance rules under EU MiFID II: Practical considerations for U.S.-based DCM practitioners in the eurobond market
From January 3, 2018, MiFID II will introduce product governance obligations on investment firms established in the EEA when they manufacture or distribute financial instruments, including shares, bonds and derivative instruments.
Our note, Product governance rules under EU MiFID II: Practical considerations for U.S.-based DCM practitioners in the eurobond market, considers aspects of the scope and some implications of the product governance obligations for U.S.-based DCM practitioners and for non-MiFID firms. It also considers how MiFID firms can aim to comply with the product governance obligations in an "appropriate and proportionate" way when targeting "professional investors" only.
This note gives you an overview of the regime and highlights some of the issues that you may wish to think about now in order to comply with any applicable product governance obligations. However, we expect that market practice will continue to evolve over the coming months. In addition, MiFID II is a very extensive piece of legislation and the product governance regime is only a small part of it.