In the wake of the global financial crisis, investors have suffered significant losses as a result of breaches of conduct of business rules in the distribution of financial instruments. 

MiFID II introduced new disclosure, distribution and product governance rules to strengthen the protection of investors but, like MiFID I, did not harmonise the civil law consequences for their violation.

This book asks whether, in spite of the silence of the EU legislators, the MiFID II conduct of business rules may produce civil law effects, enabling investors to enforce them against investment firms before national courts and alternative dispute resolution (ADR) mechanisms.

Building on the case law of the CJEU, the book shows the conditions under which the breach of MiFID II conduct of business rules should give rise to a private law remedy, and what remedies would be compatible with EU law.

MiFID II and Private Law is an essential contribution to academic research in EU and financial law and will be a key text for policy-makers and legal practitioners working in the field of investor protection regulation and mis-selling litigation.

Table Of Contents

Introduction 

1. The Rise of EU Investor Protection Regulation and the Role of Private Law 

I. Harmonisation in EU Securities Markets: From Liberalisation to Regulation 

II. The Development of EU Investor Protection Regulation 

III. Protecting Investors without Private Law: The Reasons for (The Lack of) Private Law Harmonisation 

IV. Bridging EU Conduct of Business Rules and National Private Law via EU General Principles 

V. The Interplay between EU Sectoral Regulation and National General Private Law: Towards Hybridisation of National Private Law? 

VI. Preliminary Conclusion 



2. Regulatory Design of MiFID II's Conduct of Business Rules 

I. Rationales of Conduct of Business Rules 

II. The Scope of Conduct of Business Rules 

III. The Clients' Categorisation Rules 

IV. Regulating Investment Firms' Conduct 

V. Private Law Duties and Remedies (in the Shadow of) MiFID II 

VI. National Conduct of Business Rules 

VII. Preliminary Conclusion



3. Civil Law Effects of ESMA's 'Conduct of Business Handbook' 

I. Conduct Supervision and Private Law: The Issues at Stake 

II. ESMA's Institutional Design 

III. ESMA's 'Conduct of Business Handbook' 

IV. National Supervisory Models 

V. A Comparative Assessment 

VI. Shaping Private Law Through Supervisory Standards 

VII. Preliminary Conclusion



4. Civil Law Effects of Conduct of Business Rules in Out-of-Court Proceedings 

I. Out-of-Court Retail Dispute Resolution in EU Law 

II. The EU Regulatory Framework 

III. National Out-of-Court Dispute Resolution Mechanisms 

IV. Adjudicative Approach 

V. A Comparative Assessment 

VI. Preliminary Conclusion



5. Civil Law Effects of Conduct of Business Rules before National Courts 

I. Mis-selling Litigation: An EU Law Issue 

II. National Judicial Approaches 

III. A Comparative Assessment 

IV. Preliminary Conclusion



6. The Emergence of Hybrid Private Law in Retail Financial Markets: Foundations and Legitimacy 

I. Anchoring Hybrid Private Law to EU Law 

II. Hybrid Private Law Duties 

III. Hybrid Private Law Remedies 

IV. The Design of Effective Private Law Remedies 

V. Horizontal Application of EU of Fundamental Rights 

VI. Preliminary Conclusion 



7. Hybrid Enforcement Mechanisms: Future Perspectives 

I. Private Enforcement of Conduct Regulation in the EU: Unexpected Importance and Limitations 

II. The Goals of Private Enforcement 

III. The Risks of Private Enforcement 

IV. The Incentives' Design in Retail Clients' Litigation 

V. Connecting Public and Private Enforcement: Towards Hybrid Enforcement Mechanisms? 

VI. Preliminary Conclusion