What changed, Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014

+ ## CHAPTER I — GENERAL PROVISIONS
− ### art_1
+ ### Article 1 — Definitions
− Article 1
+ (a) ‘expert’ means a person referred to in Article 3(1)(34)(ii) of Regulation (EU) No 596/2014 who repeatedly proposes investment decisions in respect of financial instruments and who: (i) presents himself as having financial expertise or experience; or (ii) puts forward his recommendation in such a…
− | (a) | ‘expert’ means a person referred to in Article 3(1)(34)(ii) of Regulation (EU) No 596/2014 who repeatedly proposes investment decisions in respect of financial instruments and who:(i)presents himself as having financial expertise or experience; or(ii)puts forward his recommendation in such a…
− | --- | --- |
− | (i) | presents himself as having financial expertise or experience; or |
− | (ii) | puts forward his recommendation in such a way that other persons would reasonably believe he has financial expertise or experience; |
+ (b) ‘group’ means a group as defined in Article 2(11) of Directive 2013/34/EU of the European Parliament and of the Council (1).
− | (b) | ‘group’ means a group as defined in Article 2(11) of Directive 2013/34/EU of the European Parliament and of the Council (5). |
− | --- | --- |
+ ## CHAPTER II — PRODUCTION OF RECOMMENDATIONS
− ### art_2
+ ### Article 2 — Identity of producers of recommendations
− Article 2
+ **1.** Persons who produce investment recommendations or other information recommending or suggesting an investment strategy (‘recommendations’) shall disclose clearly and prominently in all the recommendations they produce their identity and the following information about the identity of any other…
− 1. Persons who produce investment recommendations or other information recommending or suggesting an investment strategy (‘recommendations’) shall disclose clearly and prominently in all the recommendations they produce their identity and the following information about the identity of any other per…
+ **2.** Where the person who produces recommendations is an investment firm, a credit institution, or a natural person working for an investment firm or a credit institution under contract of employment or otherwise, that person shall, in addition to the information laid down in paragraph 1, state th…
− | (a) | the name and the job title of all the natural persons involved in the production of the recommendation; |
− | --- | --- |
+ **3.** Where the person who produces recommendations is not a person referred to in paragraph 2, but is subject to self-regulatory standards or codes of conduct for the production of recommendations, that person shall, in addition to the information laid down in paragraph 1, state a reference to tho…
− | (b) | where a natural or a legal person involved in the production of the recommendation is acting under contract, including a contract of employment, or otherwise for a legal person, the name of such legal person. |
− | --- | --- |
+ ### Article 3 — General obligations in relation to objective presentation of recommendations
− 2. Where the person who produces recommendations is an investment firm, a credit institution, or a natural person working for an investment firm or a credit institution under contract of employment or otherwise, that person shall, in addition to the information laid down in paragraph 1, state the id…
+ **1.** Persons who produce recommendations shall ensure that their recommendations comply with the following requirements:(a) facts are clearly distinguished from interpretations, estimates, opinions and other types of non-factual information;(b) all substantially material sources of information are…
− 3. Where the person who produces recommendations is not a person referred to in paragraph 2, but is subject to self-regulatory standards or codes of conduct for the production of recommendations, that person shall, in addition to the information laid down in paragraph 1, state a reference to those s…
+ **2.** Where the disclosure of the information required in points (b) or (e) of paragraph 1 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows, audio or video c…
− ### art_3
+ **3.** Persons who produce recommendations shall substantiate any recommendation they have produced to the competent authority upon its request.
− Article 3
+ ### Article 4 — Additional obligations in relation to objective presentation of recommendations applicable to the persons referred to Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and experts
− 1. Persons who produce recommendations shall ensure that their recommendations comply with the following requirements:
+ **1.** In addition to the information laid down in Article 3, the persons referred to Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and experts shall include in the recommendation the following information in a clear and prominent manner:(a) if the recommendation has been disclosed to the issue…
− | (a) | facts are clearly distinguished from interpretations, estimates, opinions and other types of non-factual information; |
− | --- | --- |
+ **2.** Where the disclosure of the information required in points (b), (e) or (i) of paragraph 1 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows, audio or vi…
− | (b) | all substantially material sources of information are clearly and prominently indicated; |
− | --- | --- |
+ ### Article 5 — General obligations in relation to disclosure of interests or of conflicts of interest
− | (c) | all sources of information are reliable or, where there is any doubt as to whether a source is reliable, this is clearly indicated; |
− | --- | --- |
+ **1.** Persons who produce recommendations shall disclose in their recommendations all relationships and circumstances that may reasonably be expected to impair the objectivity of the recommendation, including interests or conflicts of interest, on their part or on the part of any natural or legal p…
− | (d) | all projections, forecasts and price targets are clearly and prominently labelled as such, and the material assumptions made in producing or using them are indicated; |
− | --- | --- |
+ **2.** Where a person who produces recommendations referred to in paragraph 1 is a legal person, the information to be disclosed in accordance with paragraph 1 shall also include any interests or conflicts of interest of any person belonging to the same group that are:(a) known, or reasonably expect…
− | (e) | the date and time when the production of the recommendation was completed is clearly and prominently indicated. |
− | --- | --- |
− 
− 2. Where the disclosure of the information required in points (b) or (e) of paragraph 1 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows, audio or video confe…
+ **3.** Where a person who produces recommendations referred to in paragraph 1 is a natural person, the information to be disclosed in accordance with paragraph 1 shall also include any interests or conflicts of interest of any person closely associated with him.
− 3. Persons who produce recommendations shall substantiate any recommendation they have produced to the competent authority upon its request.
+ ### Article 6 — Additional obligations in relation to disclosure of interests or of conflicts of interest by persons referred to in Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and experts
− ### art_4
+ **1.** In addition to the information required in Article 5, the persons referred to in Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and experts shall include in the recommendation the following information on their interests and conflicts of interest concerning the issuer to which the recomme…
− Article 4
+ **2.** Where the person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or a legal person working for an investment firm or credit institution under a contract, including a contract of employment, or otherwise, that person shall, in addition to the information la…
− 1. In addition to the information laid down in Article 3, the persons referred to Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and experts shall include in the recommendation the following information in a clear and prominent manner:
+ **3.** Where the person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or legal person working for an investment firm or credit institution under a contract, including a contract of employment, or otherwise, that person shall publish, on a quarterly basis, the p…
− | (a) | if the recommendation has been disclosed to the issuer to which the recommendation, directly or indirectly, relates and it has been subsequently amended, a statement to that effect; |
− | --- | --- |
− 
− | (b) | a summary of any basis of valuation or methodology and the underlying assumptions used to either evaluate a financial instrument or an issuer, or to set a price target for a financial instrument, as well as an indication and a summary of any changes in the valuation, methodology or underlyin…
− | --- | --- |
+ **4.** Where the disclosure of the information referred to in paragraphs 1 and 2 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows or audio or video conference…
− | (c) | an indication of the place where detailed information about the valuation or methodology and the underlying assumptions is directly and easily accessible, in the event that the person who produces recommendations has not used proprietary models; |
− | --- | --- |
+ ### Article 7 — Dissemination of recommendations by the producer
− | (d) | an indication of the place where material information about the proprietary models used is directly and easily accessible, in the event that the person who produces recommendations has used proprietary models; |
− | --- | --- |
− 
− | (e) | the meaning of any recommendation made, such as the recommendations to ‘buy’, ‘sell’ or ‘hold’, and the length of time of the investment to which the recommendation relates are adequately explained and any appropriate risk warning, which shall include a sensitivity analysis of the assumption…
− | --- | --- |
− 
− | (f) | a reference to the planned frequency of updates to the recommendation; |
− | --- | --- |
− 
− | (g) | an indication of the relevant date and time for any price of financial instruments mentioned in the recommendation; |
− | --- | --- |
− 
− | (h) | where a recommendation differs from any of their previous recommendations concerning the same financial instrument or issuer that has been disseminated during the preceding 12-month period, the change(s) and the date of that previous recommendation are indicated; and |
− | --- | --- |
− 
− | (i) | a list of all their recommendations on any financial instrument or issuer that were disseminated during the preceding 12-month period, containing for each recommendation: the date of dissemination, the identity of the natural person(s) referred to in Article 2(1)(a), the price target and the…
− | --- | --- |
− 
− 2. Where the disclosure of the information required in points (b), (e) or (i) of paragraph 1 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows, audio or video …
− 
− ### art_5
− 
− Article 5
− 
− 1. Persons who produce recommendations shall disclose in their recommendations all relationships and circumstances that may reasonably be expected to impair the objectivity of the recommendation, including interests or conflicts of interest, on their part or on the part of any natural or legal perso…
− 
− 2. Where a person who produces recommendations referred to in paragraph 1 is a legal person, the information to be disclosed in accordance with paragraph 1 shall also include any interests or conflicts of interest of any person belonging to the same group that are:
− 
− | (a) | known, or reasonably expected to be known, to the persons involved in the production of the recommendation; or |
− | --- | --- |
− | (b) | known to persons who, although not involved in the production of the recommendation, have or could reasonably be expected to have, access to the recommendation prior to its completion. |
− | --- | --- |
− 
− 3. Where a person who produces recommendations referred to in paragraph 1 is a natural person, the information to be disclosed in accordance with paragraph 1 shall also include any interests or conflicts of interest of any person closely associated with him.
− 
− ### art_6
− 
− Article 6
− 
− 1. In addition to the information required in Article 5, a person referred to in Article 3(1)(34)(i) of Regulation (EU) No 596/2014 and an expert shall include in the recommendation the following information on their interests and conflicts of interest concerning the issuer to which the recommendati…
− 
− | (a) | if it owns a net long or short position exceeding the threshold of 0,5 % of the total issued share capital of the issuer, calculated in accordance with Article 3 of Regulation (EU) No 236/2012 and with Chapters III and IV of Commission Delegated Regulation (EU) No 918/2012 (6), a statement t…
− | --- | --- |
− 
− | (b) | if holdings exceeding 5 % of its total issued share capital are held by the issuer, a statement to that effect; |
− | --- | --- |
− 
− | (c) | if the person producing the recommendation or any other person belonging to the same group with that person:(i)is a market maker or liquidity provider in the financial instruments of the issuer, a statement to that effect;(ii)has been lead manager or co-lead manager over the previous 12 mont…
− | --- | --- |
− | (i) | is a market maker or liquidity provider in the financial instruments of the issuer, a statement to that effect; |
− | (ii) | has been lead manager or co-lead manager over the previous 12 months of any publicly disclosed offer of financial instruments of the issuer, a statement to that effect; |
− | (iii) | is party to an agreement with the issuer relating to the provision of services of investment firms set out in Sections A and B of Annex I to Directive 2014/65/EU of the European Parliament and of the Council (7), a statement to that effect, provided that this would not entail the disclosur…
− | (iv) | is party to an agreement with the issuer relating to the production of the recommendation, a statement to that effect. |
− 
− 2. Where the person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or a legal person working for an investment firm or credit institution under a contract, including a contract of employment, or otherwise, that person shall, in addition to the information laid d…
− 
− | (a) | a description of the effective internal organisational and administrative arrangements and of any information barrier it has set up for the prevention and avoidance of conflicts of interest with respect to the recommendations; |
− | --- | --- |
− 
− | (b) | if the remuneration of natural or legal persons working for it under a contract of employment or otherwise, and who were involved in producing the recommendation, is directly tied to transactions in services of investment firms set out in Sections A and B of Annex I to Directive 2014/65/EU o…
− | --- | --- |
− 
− | (c) | information on the price and date of acquisition of shares where natural persons working for the person referred to in the first subparagraph under a contract of employment or otherwise, and who were involved in producing the recommendation, receive or purchase the shares of the issuer to wh…
− | --- | --- |
− 
− 3. Where the person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or legal person working for an investment firm or credit institution under a contract, including a contract of employment, or otherwise, that person shall publish, on a quarterly basis, the propo…
− 
− 4. Where the disclosure of the information referred to in paragraphs 1 and 2 is disproportionate in relation to the length or form of the recommendation, including in the case of a non-written recommendation that is made using modalities, such as meetings, road shows or audio or video conferences, a…
− 
− ### art_7
− 
− Article 7
− 
+ ## CHAPTER III — DISSEMINATION OF RECOMMENDATIONS PRODUCED BY THIRD PARTIES
− ### art_8
+ ### Article 8 — Arrangements for dissemination of recommendations
− Article 8
+ **1.** Persons who disseminate recommendations produced by a third party shall communicate to the persons receiving the recommendations the following information:(a) their identity, in a clear and prominent manner;(b) all relationships and circumstances that may reasonably be expected to impair the …
− 1. Persons who disseminate recommendations produced by a third party shall communicate to the persons receiving the recommendations the following information:
+ **2.** Where a person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or legal person working for an investment firm or a credit institution under a contract, including a contract of employment, or otherwise, that person shall, in addition to the information laid…
− | (a) | their identity, in a clear and prominent manner; |
− | --- | --- |
+ ### Article 9 — Additional arrangements for dissemination of summary or extract of recommendations
− | (b) | all relationships and circumstances that may reasonably be expected to impair the objective presentation of the recommendation, including interests or conflicts of interest concerning any financial instrument or the issuer to which the recommendation, directly or indirectly, relates; |
− | --- | --- |
+ **1.** In addition to the information laid down in Article 8, persons who disseminate a summary or an extract of a recommendation produced by a third party shall ensure that such summary or extract:(a) is clear and not misleading;(b) is identified as a summary or extract;(c) includes a clear identif…
− | (c) | the date and time when the recommendation is first disseminated. |
− | --- | --- |
+ **2.** The persons referred to in paragraph 1 shall also ensure that the information regarding the producer of the recommendation set out in Articles 2 to 6 is made available either directly, in the summary or in the extract itself, or through reference to the place where that information can be acc…
− 2. Where a person referred to in paragraph 1 is an investment firm, a credit institution, or a natural or legal person working for an investment firm or a credit institution under a contract, including a contract of employment, or otherwise, that person shall, in addition to the information laid dow…
+ ### Article 10 — Additional arrangements for dissemination of substantially altered recommendations
− | (a) | the identity of the relevant competent authority; |
− | --- | --- |
+ **1.** In addition to the information laid down in Article 8, persons who disseminate a recommendation produced by a third party that is substantially altered, shall ensure that the recommendation clearly indicates the substantial alteration in detail.
− | (b) | its own interests or indication of conflicts of interest as laid down in Article 5 and Article 6(1) and (2), unless that person is acting as the disseminating channel of the recommendations produced within the same group without exercising any discretion as to the selection of the recommenda…
− | --- | --- |
+ **2.** The persons referred to in paragraph 1 shall meet the requirements laid down in Articles 2 to 5 to the extent of the substantial alteration and include in the substantially altered recommendation a reference to the place where the information regarding the producer of the original recommendat…
− ### art_9
+ ## CHAPTER IV — FINAL PROVISIONS
− Article 9
+ ### Article 11 — Entry into force
− 1. In addition to the information laid down in Article 8, persons who disseminate a summary or an extract of a recommendation produced by a third party shall ensure that such summary or extract:
+ This Regulation shall enter into force on the day following that of its publication in the *Official Journal of the European Union*.
− | (a) | is clear and not misleading; |
− | --- | --- |
− 
− | (b) | is identified as a summary or extract; |
− | --- | --- |
− 
− | (c) | includes a clear identification of the original recommendation. |
− | --- | --- |
− 
− 2. The persons referred to in paragraph 1 shall also ensure that the information regarding the producer of the recommendation set out in Articles 2 to 6 is made available either directly, in the summary or in the extract itself, or through reference to the place where that information can be accesse…
− 
− ### art_10
− 
− Article 10
− 
− 1. In addition to the information laid down in Article 8, persons who disseminate a recommendation produced by a third party that is substantially altered, shall ensure that the recommendation clearly indicates the substantial alteration in detail.
− 
− 2. The persons referred to in paragraph 1 shall meet the requirements laid down in Articles 2 to 5 to the extent of the substantial alteration and include in the substantially altered recommendation a reference to the place where the information regarding the producer of the original recommendation …
− 
− ### art_11
− 
− Article 11
− 
− This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.