MiFID_II_EN

20 Under MiFID II regulation, the European and national financial regula- tors are given new powers allowing them to further strengthen their supervisory policy. As from January 3rd, the supervisors will be able to forbid financial institutions from launching certain investment products onto the market. This is of course not without limitations, they must have a valid reason for this: for example, a product may be too complex for a certain type of investor, who risks not being sufficiently protected . A national supervisor must first consult with the European supervisors for such a restriction. Increased supervision, how so? Yes, supervisors are given more opportunities to sanction financial in- stitutions that do not respect the new rules. For example, they can im- pose higher fines (up to EUR 5 million). Supervisors will also be able to announce a sanction faster. This should have a deterrent effect on financial institutions that have a rather casual approach to the rules, as they can incur significant reputational damage. Are tougher sanctions underway?