European regulation — Directive 2014/65/EU

MiFID II — Technical guide to the investment advisory service

What Directive 2014/65/EU establishes, how it is transposed into the Italian TUF, what impact it has on advice provided by advisers authorised for off-premises offering, and why distinguishing between the independent and non-independent form matters more than the terminology.

Editorial review: 27 September 2026

What MiFID II is and where it applies

La Directive 2014/65/EU (Markets in Financial Instruments Directive — MiFID II) is the European regulatory framework for markets in financial instruments, applicable to all authorised intermediaries (banks, SIM, SGR), to financial advisers authorised for off-premises offering registered in the OCF Register, and to investment services provided to any category of client (retail, professional, eligible counterparties).

In force since 3 January 2018, it was transposed in Italy through Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance — TUF, as amended) and through the implementing CONSOB Regulations (Intermediaries Regulation no. 20307/2018, Markets Regulation).

The European-level supervisory authority is ESMA ; in Italy, supervision of markets and of intermediaries' conduct is the responsibility of CONSOB . For the network of authorised Financial Advisers, the body maintaining the register and exercising disciplinary supervision is OCF .

Independent vs non-independent advice

The client must know before the service whether advice is independent. Requirements concern the breadth of analysis and treatment of inducements, not just the adviser’s title or organisational form.

Independent advice

Product universe: broad and diversified, not limited to group products or commercial partners.

InducementsRestrictions on third-party inducements under article 24 MiFID II; permitted exceptions and related duties require review.

RemunerationRemuneration arrangements disclosed in the contract; independence and payment method are not synonyms.

SupervisionThe nature of the service is distinct from professional registration: check the intermediary’s documents and the engagement.

Non-independent advice

Product universe: typically linked to the distribution architecture of the enabling intermediary (bank, SGR, network).

Inducements: may be received by the intermediary, provided they are disclosed ex ante to the client, are designed to enhance the quality of the service, and do not conflict with the duty to act in the client's best interest.

Remuneration: typically charged on the products (management, subscription), not billed separately to the client.

Supervision: OCF Register, "financial advisers authorised for off-premises offering" section (art. 31 TUF), in operational link with the authorised intermediary (bank, SIM, SGR, IMEL).

Operating declaration. Alessandro Vigni operates as a Financial Adviser authorised for off-premises offering, registered in the OCF Register under OCF n. 633610, in operational link with a leading Italian private banking intermediary The advisory service provided is classified as "non-independent investment advice" pursuant to TUF art. 1 c. 5-septies. Details on cost transparency and inducements are published on the /trasparenza page.

Cost transparency (art. 50 Delegated Regulation 2017/565)

MiFID II requires ex ante (before the service) and ex post (annual) reporting of all costs and charges connected with the investment service and the financial instruments. The required detail is in aggregated and disaggregated form, expressed in absolute value and as a percentage of the invested capital.

  • Service costs: advice, management, execution, custody, financial research
  • Instrument costs: subscription, redemption, management, performance and switch fees
  • Inducements: sums received by the intermediary from third parties (e.g. retrocessions from the investment house → distributor)
  • Impact on returns: simulation on standard scenarios (1 year, intermediate period, recommended holding period)

Suitability assessment (art. 25 MiFID II)

The Suitability Assessment is the mandatory client-profiling procedure carried out before providing the advisory or portfolio management service. It assesses three dimensions:

  1. Knowledge and experience: understanding of financial instruments and the associated risks, prior investment experience
  2. Financial situation: total assets, income flows, ability to bear losses without compromising one's standard of living
  3. Investment objectives: risk tolerance, expected holding period, purpose (capital, income, protection, succession)

The resulting profile binds the intermediary to recommend only instruments consistent with the client's level of knowledge, financial capacity, and objectives. The assessment must be updated periodically (usually annually) and whenever there are significant changes in the client's situation.

PRIIPs KID (Regulation (EU) 1286/2014)

For retail investment products (structured certificates, class III/V policies, UCITS funds from 2023) the KID — Key Information Document — required by Regulation (EU) 1286/2014 is mandatory.

The KID is standardised to 3 pages in Q&A format and contains:

  • Summary Risk Indicator (SRI 1-7)
  • Performance scenarios (favourable, moderate, unfavourable, stress)
  • Costs over the horizons required for the product, including the recommended holding period
  • Any interconnection with other products
  • Recommended disinvestment period (holding period)

For further details on PRIIPs and structured certificates see the dedicated guide: PRIIPs — Regulation (EU) 1286/2014.

Knowledge and Competence (K&C) — adviser requirements

Art. 25 MiFID II and the ESMA Guidelines 2015/1886 set the minimum knowledge and competence requirements for staff providing advice or information to retail and professional clients.

For Financial Advisers authorised for off-premises offering registered in the OCF Register (Legislative Decree 58/1998 art. 31), the K&C requirements are fulfilled through:

  • Qualifications and requirements checked against the activity
  • Updates aligned with instruments, services and regulatory changes
  • Evidence and assessment of competence under applicable rules

Verifiable primary sources

Related topics

PRIIPs — Regulation 1286/2014

KID, retail investment products, structured certificates, class III/V policies.

Flat Tax for new residents €300K

TUIR art. 24-bis and Law 199/2025: conditions, amounts and limits of tax comparisons.

Italian tax regimes for HNWIs

Comparative table: flat tax, inbound workers, flat-rate scheme, IRPEF.

/trasparenza page

Full MiFID II disclosure: inducements, conflicts of interest, remuneration.

CTA

Want to understand how MiFID II applies to your specific case?

Request a consultation