MiFID II under the Wft.

The EU directive for investment services and markets, implemented in the Netherlands in the Wft. It sets requirements for licensing, conduct, transparency and market infrastructure.

The Dutch act implementing the MiFID II review contains six core changes, including the consolidated tape, rules for systematic internalisers and adjustments to volatility mechanisms. The act entered into force on 26 September 2026, together with the implementing decree for the MiFID II and MiFIR review (Stb. 2026, 281). On 29 September 2026 the Dutch implementation of the Listing Act followed (Stb. 2026, 216 and 287), which also transposes the new rules on paying for investment research from Delegated Directive (EU) 2026/374 into the BGfo.

When the FX hedging offered qualifies as a standalone investment service rather than an ancillary currency-exchange service. The AG opinion in Iulicris v Ibanfirst (C-339/25, 19 March 2026) clarifies where that boundary lies; the Court’s judgment had not yet been delivered as at 7 October 2026.

Delegated Regulation (EU) 2026/825 (Official Journal of 23 July 2026) sets new regulatory technical standards for establishing and assessing the effectiveness of order execution policies. It applies from 12 February 2028; investment firms should rewrite their best-execution policy against the new criteria during 2027.

Under EMIR certain counterparties must hold an active account at an EU CCP for specific derivatives. ESMA published the reporting templates; the first report is due before 31 July 2026.

MiFID II applies to investment firms and to banks providing investment services, implemented in the Netherlands through the Wft. The AFM supervises conduct (duty of care, product governance, transparency), DNB supervises prudential requirements. Parties that are not primarily investment firms — such as payment institutions offering FX products — can also touch the MiFID perimeter.

As soon as you professionally provide investment services or perform investment activities in financial instruments — such as order execution, investment advice, portfolio management or dealing on own account — a Wft licence as an investment firm is required, unless an exception or exemption applies. The delineation of “financial instrument” and “service” is precise work; borderline cases such as currency derivatives require a perimeter analysis.

The core: know-your-client (appropriateness or suitability test, depending on the service), best execution, conflicts-of-interest management, recording and retention of communications, and full ex-ante and ex-post cost and risk transparency. The AFM tests these strictly, including for digital and execution-only propositions.

With execution only you merely execute orders and an appropriateness test suffices; investment advice and portfolio management trigger the heavier suitability test, documenting the client’s knowledge and experience, financial position, objectives and risk appetite. Portfolio management adds ongoing responsibility for the portfolio.

Manufacturers and distributors of investment products must define a target market, align the distribution strategy with it and periodically test whether the product still fits that target market. This applies throughout the chain and therefore also affects parties distributing third-party products.

MiFID II governs authorisation and conduct; the prudential framework for investment firms has been set out since 2021 in the IFR and IFD, with a class system determining capital and liquidity requirements and reporting. Both frameworks need to be designed in conjunction — see our FINREP/COREP page for the reporting side.