<!-- headlesslaw {"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2026-03-03","gaps":[],"covered":["ESMA Q&A 2557 — Q&A — Investment firms’ use of rebates and discounts [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees","url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees","title":"ESMA Q&A 2557 — Q&A — Investment firms’ use of rebates and discounts [Answer Published]","family":"l3","work_id":"spaces/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees","status":"answer published","force_status":null,"date_state":"current","requested_date":null,"as_of":"2026-11-02","applies_from":null,"application":null,"version_label":"ESMA Q&A register, 3 June 2025","check":{"against":"the ESMA publication","on":"2026-10-26"},"check_result":"matched","official_url":"https://www.esma.europa.eu/publications-data/questions-answers/2557","valid_from":"0001-01-01","valid_until":null,"revision":1,"content_id":"2894374afc0aaeac","change_date":null,"nearest_versions":["2026-03-03"],"first_text_date":null,"correction_applies":false,"versions":["2026-03-03"],"version_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees/versions/2026-03-03","revision_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees/versions/2026-03-03/rev/2894374afc0aaeac","versions_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees/versions","relations_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-2557-investment-firms-use-of-rebates-and-discounts-to-lower-fees/relations","source_line":"Answer prepared by the European Commission, published in the ESMA Q&A tool · not legislation · published 3 Mar 2026 [Answer Published]","attribution":{"prepared_by":"European Commission","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":"2026-03-03","question_submitted_on":"2025-06-03","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_2557, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_2557, column 'Date of submission'"}},"adoption":null}}} -->
---
title: "ESMA Q&A 2557 — Q&A — Investment firms’ use of rebates and discounts [Answer Published]"
shortTitle: "ESMA Q&A 2557 — Q&A — Investment firms’ use of rebates and discounts [Answer Published]"
answer_id: ESMA_QA_2557
topic: "Inducements"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFIR"
mifir_level3: true
mica_level2: false
legal_basis: "Article 39a, Paragraph 1"
date: 3 June 2025
source_link: https://www.esma.europa.eu/publications-data/questions-answers/2557
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 3 June 2025"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/2557"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "European Commission"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "Answer provided by the European Commission"
    locator: "ESMA Q&A entry ESMA_QA_2557, first line of the answer field"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2026-03-03"
  question_submitted_on: "2025-06-03"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_2557, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_2557, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer prepared by the European Commission, published in the ESMA Q&A tool · not legislation · published 3 Mar 2026 [Answer Published]**

*Answer Published · ESMA Q&A register, 3 June 2025 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/2557)*

| | |
|---|---|
| **Full title** | ESMA Q&A 2557 — Q&A — Investment firms’ use of rebates and discounts \[Answer Published\] |
| **Prepared by** | European Commission |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_2557 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 3 March 2026; question submitted 3 June 2025 |
| **Legal basis** | Article 39a, Paragraph 1 |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Investment firms’ use of rebates and discounts to lower fees for clients under the payment for order flow (PFOF) prohibition**

### Question

Under Article 39a of Regulation (EU) 2014/600/EU (MIFIR), are investment firms allowed to use rebates and discounts on the transaction fees of execution venues to lower fees for clients?

***

### Answer

Answer provided by the European Commission

Yes, investment firms are allowed to use rebates and discounts to lower fees for clients but only where they comply and are able to demonstrate their compliance with all of the following conditions set out in Article 39a(1) of MiFIR:

(a) the rebate or discount on the transaction fees of execution venues is permitted under the approved and public tariff structure of the relevant trading venue in the Union or of the relevant third-country trading venue;

(b) the rebate or the discount exclusively benefits the client and not the firm;

(c) they do not result in a monetary benefit to the investment firm

Disclaimer:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/2557)