Under MIFID regulations, which scenario permits the reliance on information from another firm?

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The correct choice highlights the importance of independence and the written nature of the information being relied upon. Under the Markets in Financial Instruments Directive (MiFID) regulations, for a firm to rely on information provided by another entity, it is crucial that such information comes from an independent source. This is to ensure that the information is impartial and not subject to conflicts of interest that could arise if the reporting entity has a vested interest in the outcome of the scenario.

Additionally, the requirement for written communication serves to establish a clear, traceable record of the information received, which is essential for compliance and regulatory oversight. Verbal communication can lead to misunderstandings and lacks the accountability that written documentation provides.

In contrast, reliance on information from a firm within the same group or a MiFID authorized firm does not inherently satisfy the criteria for independence and the requirement for written documentation. The burden of ensuring the reliability of the information lies with the firm utilizing it, making it essential to adhere to these standards under MiFID regulations.

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