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Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2018-03-23","question_submitted_on":"2018-03-23","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1861, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1861, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1861","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1861-inducements.md","body_sha256":"83fc77b03a3019d391085eedcb48b7005e7079f3d54e4c9c2548fa3892c17702"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1861 — Q&A — Inducements [Answer Published]\"\nshortTitle: \"ESMA Q&A 1861 — Q&A — Inducements [Answer Published]\"\nanswer_id: ESMA_QA_1861\ntopic: \"Inducements\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 23 March 2018\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1861\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 23 March 2018\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1861\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1861: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2018-03-23\"\n  question_submitted_on: \"2018-03-23\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1861, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1861, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 23 Mar 2018 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 23 March 2018 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1861)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1861 — Q&A — Inducements \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1861 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 23 March 2018; question submitted 23 March 2018 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Inducements**\n\n### Question\n\nHow should investment firms providing the investment service of portfolio management treat inducements received after 3 January 2018 with regards to financial instruments in which the firm has invested on behalf of the client before that date?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch 12, question 6\\]\n\nAccording to Article 24(8) of MiFID II, investment firms providing the investment service of portfolio management shall not accept and retain fees, commissions or any monetary or non-monetary benefits paid or provided by any third party (or a person acting on behalf of a third party) in relation to the provision of such an investment service to clients.\n\nThese requirements apply not only to any fee, commission or monetary or non-monetary benefit received by a portfolio manager in relation to investments in ‘new’ instruments undertaken from 3 January 2018 onward, but also with respect to any ongoing inducement the firm may be receiving in relation to financial instruments in which the firm has invested on behalf of the client prior to that date.\n\nThis means that only ongoing inducements accrued until 2 January 2018 can be received (so long as they are compliant with MiFID I requirements). ESMA is of the opinion that investment firms should be able to demonstrate and document that such inducements only concern the period prior to 3 January. From 3 January 2018, the firm has to: (i) transfer to its clients such fees, commissions or monetary benefits paid or provided by any third party; or (ii) change any existing arrangements in place with third parties so as to no longer receive any inducements from them.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1861)\n"}