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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am in a dispute with a financial firm involving derivatives.

Customer Question

I am in a dispute with a financial firm involving derivatives. I am now told that the European Mifid regulation, that has been incorporated in the FCA’s Conduct of Business Rules(COBS) are only optional for firms and they are free to conduct business on their own terms and conditions.
I would like to know if this is true and what is the obligation for a financial firm to adhere to the Mifid regulations (as COBS) and what are my rights relating to this.
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend, Hello and welcome. Thank you for providing an opportunity to assist you.Kindly give me couple of hours and see if I can help you. I will need some time to research. I will revert back in short time.Warm Regards,
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend,
Thank you for your patience.
NO-- MiFID regulations are NOT optional. Only those firms are exempted who trade on their "OWN" account, and not other wise. On the contrary, MiFID II regulatory framework significantly narrows exemptions currently available to derivatives traders.
The following link with take you further to your desired topics if you seek further reading on this.
http://ec.europa.eu/finance/securities/isd/index_en.htm
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.
Warm Regards
Rakhi Vasavada and 2 other Finance Specialists are ready to help you
Customer: replied 1 year ago.
Hi I have not heard anything back from you since your direction to the european mifid website.. Your response really stated the Mifid law. My question relates to how this is applied in the UK. The FCA has added it to their Code of Business conduct rules.Now I have lost money on the trades and the firm is looking to bankrupt me to get access to all my funds. However there are a number of areas with Mifid/COBs that they have not adhered to. I would like to know how I can address this. Does this mean the contract I had with them is not valid, or how else can I benefit from the Mifid/COBs rules that have not been followed.
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend,
There is little misunderstanding here.
In my previous reply to you, I clearly stated my opinion that MiFID regulations are NOT optional.
I further stated that only those firms are exempted who trade on their "OWN" account, and not other wise. On the contrary, MiFID II regulatory framework significantly narrows exemptions currently available to derivatives traders.
The website that I gave was just an additional reference, just in case you need.
Otherwise, in response to your core question -- I am very clear on my opinion that MiFID regulations are NOT optional.
Based on this response, you can certainly follow up with a legal advice from a local attorney to take the matter in its logical direction.
I hope I have conveyed myself clearly. I apologize if any confusion was created earlier.
Warm Regards
Customer: replied 1 year ago.
Sorry. The question is how would I get a remedy. Before I started spending on legal fees I wanted to know how I would get a remedy. Do I claim a breach of contract etc. I am not sure that although there is the regulations, that I have any recourse to this
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend, Hello and welcome again. This question is little legal in nature. However, as you rightly said, before starting to spend on lawyers, you can try something from your own end. I believe the first thing you need to do is to reach out to FCA - Financial Conduct Authority. Please refer the following link for reference. https://www.fca.org.uk/about/operate/complaining-about-us Try this first and see if this helps. If not, then the only remedy would be to seek consultation from a Lawyer as whether to go for breach of contract or something else is something that the lawyer will be able to tell you best. I am sure this would help.You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.Warm Regards