On 17 November 2022, the European Securities and Markets Authority (ESMA) published a consultation paper on the review of the technical standards under Article 34 of the Markets in Financial Instruments Directive (MiFID II), covering the provision of investment services across the European Union.

The cross-border provision of investment services is a key element of the single market of financial services as it fosters competition and expands the offer available to consumers who can choose among a broader number of firms and investment opportunities. ESMA and National Competent Authorities (NCAs) have noted the continued increase in cross-border activities to retail clients provided under the MiFID II free provision of services regime. Although this is a welcome development consistent with the objective to develop the single market, it clearly requires NCAs to increase their focus on the supervision of cross-border activities and on cooperation.

The main amendments proposed add the following items to the information that investment firms are required to provide when submitting a notification to the NCA of its home Member State in exercise of their passport rights to provide investment services and activities in other Member States:

• the marketing means the firm will use in host Member States;
• the language(s) for which the investment firm has the necessary arrangements to deal with complaints from clients from each of the host Member States in which it provides services;
• in which Member States the firm will actively use its passport as well as the categories of clients targeted; and
• the investment firm’s internal organisation in relation to the cross-border activities of the firm.

The consultation closes on 17 February 2023.

The press release can be found here and the consultation paper can be found here.