EU · MiFIR · TITLE VII SUPERVISORY MEASURES ON PRODUCT INTERVENTION AND POSITIONS · CHAPTER 1 Product monitoring and intervention

Article 42 MiFIRProduct intervention by competent authorities

In force

Read the official text on EUR-Lex(opens in a new tab)

AI-generated What this provision does

Lets national competent authorities prohibit or restrict, in or from their Member State, the marketing, distribution or sale of financial instruments or structured deposits, or a type of financial activity or practice, where there are significant investor protection, market integrity or financial stability concerns (or a derivative harms price formation in the underlying), existing rules are insufficient and the action is proportionate and non-discriminatory. Measures may be precautionary and require one month's notice to other authorities and ESMA, which coordinates.

Level 2: delegated and implementing acts

Delegated actIn forceLegal basis
Commission Delegated Regulation (EU) 2017/567 of 18 May 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryMiFIR delegated regulation covering the criteria for a liquid market in shares, depositary receipts, ETFs and certificates, market data on a reasonable commercial basis, systematic internalisers' quoting and execution obligations, portfolio compression, and the conditions for ESMA, EBA and competent authorities' product intervention and position management powers. Amended by Delegated Regulation 2026/482 after the 2024 MiFIR review.

Level 3: ESMA Q&As, guidelines and opinions

Q&AAnsweredInferred · 90%
ESMA_QA_1127: Product intervention
ESMA · 4 Dec 2019 · the ESMA website
AI summaryWhen providing services cross-border, firms must comply both with national product intervention measures under Article 42 MiFIR that apply from their home Member State (including to clients outside the EU) and with those of the Member State where the client is located, applying the stricter measure where they differ; client location can be based on habitual residence.
Q&ALegacy Q&A documentESMA rulebook
ESMA35-43-349: Questions and Answers On MiFID II and MiFIR investor protection and intermediaries topics
ESMA · the ESMA website
AI summaryESMA's consolidated legacy Q&A document (ESMA35-43-349, final version 15 December 2023) on MiFID II investor protection topics, including best execution, suitability, call recording, inducements and research, costs and charges, client categorisation, third-country firms and product governance. It is no longer updated; Q&As from 2024 are in ESMA's Q&A tool.

Commentary

No law-firm commentary is linked to this provision yet.

219 more documents relate to MiFIR as a whole without naming an article.

UK counterpart

Article 42 UK MiFIR · Product intervention by competent authorities
UK MiFIR
Revocation enacted by Financial Services and Markets Act 2023; no commencement date yet.
EquivalentExplicit reference
UK revocation enacted (Financial Services and Markets Act 2023), not yet commenced.

Version history

From 2 Jul 2014

Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.