Passport ID requirement 'illogical' addition to MiFID II

Duplicates existing rules

ESMA's requirement for wealth managers to name clients using their passports under MiFID II is an "illogical" duplication of existing UK identification requirements, according to Andy Thompson, director of operational policy and research at the Wealth Management Association (WMA).

The requirement was proposed in a consultation paper on transaction reporting released by the European Securities and Markets Authority (ESMA) in December last year. It requires each client's first name and surname to be obtained from either a passport or identity card. Thompson said existing money laundering obligations already require regulated UK firms to undertake checks to ensure they have verified the identity of a client, and have been in place for many years. "It is illogical to set out different prescriptive guidelines which are impractical and exceedingly difficult and costl...