ESMA warns firms and investors for risks arising from payment for order flow (PFOF). The AFM endorses ESMA's warning.
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is issuing a public statement to remind firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. It also highlights key MiFID II obligations aimed at ensuring firms act in their clients’ best interest when executing their orders.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.