Q&A · ESMA

Underwriting and placing

Answered

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AI-generated Summary

The financing alternatives that a firm offering corporate finance advice and underwriting or placing must describe to an issuer may be limited to those suited to the issuer's needs, but should include non-investment services such as loans; the firm should also say which alternatives it did not consider and why.

Details

Reference	ESMA_QA_1784
Issuer	ESMA
Published	10 Oct 2016
Answered	10 Oct 2016
Submitted	10 Oct 2016
ESMA topics	Underwriting and placing
Earlier Q&A document	ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 6, question 1

Provisions it relates to

Article 24 MiFID II · General principles and information to clients
MiFID II
Inferred · 70%
MiFIR (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference · 90%
Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.