--- title: "ESMA Q&A 1793 — Q&A — Inducements [Answer Published]" shortTitle: "ESMA Q&A 1793 — Q&A — Inducements [Answer Published]" answer_id: ESMA_QA_1793 topic: "Inducements" status: "Answer Published" type: qa instrument_type: qa authority: ESMA binding: false binding_character: non_binding legal_status: in_force regulation: "MiFID II" mifid_level3: true mica_level2: false legal_basis: "MiFID II" date: 16 December 2016 source_link: https://www.esma.europa.eu/publications-data/questions-answers/1793 lifecycle: "Answer Published" text_version: "ESMA Q&A register, 16 December 2016" source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1793" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the ESMA publication" source: prepared_by: "ESMA" published_by: "ESMA" published_in: "ESMA Q&A tool" evidence: prepared_by: "ESMA Answer" locator: "ESMA Q&A entry ESMA_QA_1793: field 'ESMA Answer', no 'Answer provided by' line" document_type: "qa_answer" legal_nature: "not_legislation" addressees: "not stated in the document" dates: published_on: "2016-12-16" question_submitted_on: "2016-12-16" locators: published_on: "ESMA Q&A Excel export ESMA_QA_1793, column 'Esma responses', date line" question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1793, column 'Date of submission'" lifecycle_label: "Answer Published" --- **Answer by ESMA, published in its Q&A tool · not legislation · published 16 Dec 2016 [Answer Published]** *Answer Published · ESMA Q&A register, 16 December 2016 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1793)* | | | |---|---| | **Full title** | ESMA Q&A 1793 — Q&A — Inducements \[Answer Published\] | | **Prepared by** | ESMA | | **Published by** | ESMA, in the ESMA Q&A tool | | **Reference** | ESMA_QA_1793 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 16 December 2016; question submitted 16 December 2016 | | **Legal basis** | MiFID II | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the ESMA publication | **Inducements** ### Question What approach should a firm take to research provided from another group entity? *** ### Answer \[ESMA 35-43-349 MiFID II Q&As on Investor Protection Ch. 7, question 5\] The MiFID inducements rules apply in the same manner irrespective of the relationship between the provider of fees, commissions or monetary or non-monetary benefits and the firm receiving them, (i.e. irrespective of being part of the same group or not). On this basis, firms subject to MiFID inducements rules need to either assess whether accepting the inducement (research) is compliant with Article 24(7), (8), (9) and the relevant level two provisions or decide to use the arrangements in Article 13 of the MiFID II Delegated Directive. In the latter case, firms should pay particular attention to any potential conflicts of interests as well as their obligations to assess the quality of research and keep appropriate controls and oversight over the amounts paid with reference to the quality criteria mentioned beforehand. Alternatively, the firm could refuse to accept research from other intra-group entities. Where firms do seek to receive third party research from or provide it to other group entities using an RPA model under Article 13 of the MiFID II Delegated Directive, the requirement on the EU firm to ensure a research budget is used and managed in the best interests of their clients and that the costs of research are allocated fairly between client portfolios under Article 13(6) and 13(8) of the MIFID II Delegated Directive will be particularly important. The commercial preference of a firm to operate as part of a global business model does not override their obligations under Article 13 if using an RPA. The firm will need to ensure their systems, controls and oversight of research spending and cost allocation to clients are sufficient to meet all the requirements linked to an RPA, notwithstanding that this may require some changes to their business model. Alternatively, there remains the option for the firm to pay for research with direct payments from their own resources if the RPA and research charge mechanism is deemed too complex. *** **Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1793)