When initially the FCA proposed to exempt unlisted securities, it said it could only apply this exemption to this to firms who were entirely outside of MiFID. Many EIS fund managers are MiFID firms – often by virtue of investment activity outside of their fund – so this meant that the exemption could not be applied and the industry was gearing up for full-blown telephone recording requirements.
However, in its recent Handbook Notice, the FCA has agreed to extend the exemption by requiring firms in relation to their portfolio management activity, whether MiFID or not, only to tape calls that relate to investments that are relevantly linked to trading on a trading venue. The term ‘trading venue’ includes all regulated markets, MTFs (e.g. AIM) and OTFs so activity in connection with AIM listed EIS, or sales on secondary markets, will be caught but this should greatly reduce the burden on all managers, if not remove it altogether.
If you have any questions about this, or your MiFID 2 plans more generally, please do feel free to contact [email protected].
This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.
All content on this page is correct as of November 7, 2017.