Buying
7 min read2024-01-05Acquiring a MiFID Investment Firm: Key Considerations
Veritas Connect Team
M&A Regulatory Specialists
MiFID II firms require specific regulatory approvals before ownership changes. Learn about the process and common pitfalls to avoid.
Investment firms under MiFID II present unique acquisition opportunities, but the regulatory complexity demands careful navigation.
Permissions Matter
Not all investment firms are equal. Permissions for dealing as principal, portfolio management, or custody carry different capital requirements and operational complexities.
IFPR Capital Requirements
Since January 2022, the Investment Firms Prudential Regime (IFPR) applies. Understanding the target's capital classification (SNI vs non-SNI) is essential for pricing.
Key Due Diligence Areas
- Client categorisation records
- Best execution policies and monitoring
- Conflicts of interest register
- Inducements and research arrangements