Third-party payments under MiFID inducement rules

15 August 2008

This article looks at the treatment of fees and other inducements paid to or received from third parties under the Markets in Financial Instruments Directive. When are third-party payments caught by the new rules? What conditions need to be fulfilled before they can be paid without breaching the MiFID inducements rules? Do these rules oblige a distributor of investment products to disclose fees received from the issuer, product provider or their affiliates?

• Rosali Pretorius