Inducements

Roles that need it

• Compliance Officer
• Conduct Risk Analyst
• Private Banking Analyst
• Investment Product Specialist
• Fund Selection Analyst

Skills it belongs to

• Conduct and investor protection rules (MiFID II, FINRA, SEBI)

Related concepts

• MiFID II (Markets in Financial Instruments Directive II)MiFID II, Directive 2014/65/EU, is the EU framework for investment services and trading venues. It sets authorisation, organisation and conduct rules for investment firms and banks providing investment services, including suitability, best execution, inducements, product governance and conflicts of interest. It applies since January 2018 with MiFIR.
• Conflicts of interest (MiFID II)Conflicts of interest arise when a firm or its staff could benefit at a client's expense, or favour one client over another. MiFID II Article 23 requires firms to identify, prevent or manage them through a written policy, information barriers and remuneration controls, and to disclose them to clients as a last resort.
• Suitability assessmentThe suitability assessment is the MiFID II duty, when giving investment advice or managing a portfolio, to obtain information on the client's knowledge and experience, financial situation including capacity to bear losses, and investment objectives including risk tolerance and sustainability preferences, and to recommend only suitable products.

Sources

• Directive 2014/65/EU (MiFID II), EUR-Lex (external site) accessed 31 Oct 2026
• Commission Delegated Directive (EU) 2017/593 (MiFID II investor protection), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.