MiFID Working Document ESC/23/2005 re Eligible Counterparties - ACT Response

Draft commission working document on conduct of business rules, best execution, client order handling rules, eligible counterparties, clarification of the definition of investment advice and financial instruments

Implementation of MIFID is a matter of concern for users of financial markets. In this case we would like to confine our comments to the matter of the classification of clients.

The companies for which our members work have generally had long experience of dealing in wholesale markets in the UK and elsewhere. We see a very clear distinction between the requirements of such companies and those of retail clients. Accordingly, we consider it very important the availability of the three-tier classification framework (and particularly of the eligible counter-party status) to non-financial-sector companies is preserved.