in force 2024-03-28 INSERTED+1,870 −0§
Amended by Regulation (EU) 2024/791 32024R0791
applies from: unknown (an inserted provision states its own application date only in prose)
A new Article 39a is added, prohibiting investment firms acting for retail clients or the professional clients described in Section II of Annex II to Directive 2014/65/EU from receiving any fee, commission or non-monetary benefit from a third party for executing or forwarding those clients' orders to a particular execution venue, with an exception for certain rebates or discounts on transaction fees that exclusively benefit the client and do not give the firm a monetary benefit.
The new article also allows a Member State meeting a specified pre-28 March 2024 condition to exempt its investment firms from this prohibition until 30 June 2026 for clients domiciled or established in that Member State, provided it notifies ESMA by 29 September 2024, and ESMA is to keep and publicly update a list of Member States applying that exemption.
Cited: Art. 39a, v2
text before / after
inserted text (02014R0600-20240328)
Article 39a Prohibition of receiving payment for order flow 1. Investment firms acting on behalf of retail clients, as defined in Article 4(1), point (11), of Directive 2014/65/EU, or professional clients as referred to in Section II of Annex II to that Directive shall not receive any fee, commission or non-monetary benefit from any third party for executing orders from those clients on a particular execution venue or for forwarding orders of those clients to any third party for their execution on a particular execution venue (payment for order flow). The first subparagraph shall not apply to rebates or discounts on the transaction fees of execution venues, where permitted under the approved and public tariff structure of a trading venue in the Union or of a third-country trading venue, where they exclusively benefit the client. Such discounts or rebates shall not result in a monetary benefit to the investment firm. 2. A Member State in which, before 28 March 2024, investment firms acting on behalf of clients are established which receive a fee, a commission or a non-monetary benefit from any third party for executing orders from those clients on a particular execution venue or for forwarding orders of those clients to any third party for their execution on a particular execution venue, may exempt investment firms under its jurisdiction from the prohibition laid down in paragraph 1 until 30 June 2026 where those investment firms provide investment services to clients domiciled or established in that Member State. To apply the exemption referred to in the first subparagraph, a Member State which fulfils the condition laid down in the first subparagraph shall notify ESMA by 29 September 2024 to that effect. ESMA shall maintain a list of Member States using that exemption. The list shall be made available to the public and updated regularly.