Addressing heightened risks for retail clients

As the coronavirus pandemic swept Europe, ESMA warned firms not to forget their conduct of business obligations under MiFID II. The Cyprus Securities and Exchange Commission has also reaffirmed its approach, reports Aki Corsoni-Husain.

Aki Corsoni-Husain is partner and head of regulatory in the Global Tax and Regulatory department at Harneys law firm. Contact him on aki.corsoni-husain@harneys.com.

The Covid-19 outburst has shaken the economy and financial markets globally. Heightened uncertainty has led to high market volatility and an increase in credit and liquidity risks. Within these exceptional financial market circumstances, several National Competent Authorities (NCAs) have noticed – and reported to the European Securities and Markets Authority – a significant increase in the number of retail investment accounts opened as well as a surge in trading by retail clients in Europe.