EU Investor Protection Regulation and Liability for Investment Losses: A Comparative Analysis of the Interplay between MiFID & MiFID II and Private Law

This book explores the relationship between EU investor protection regulations (MiFID and MiFID II) and national contract and tort law, analyzing how the conduct of business rules implemented in national financial supervision legislation affect a firm's liability to pay damages. It challenges the view that civil courts should give private law effects to violation of these rules and advocates for a complementarity model, where courts consider the conduct of business rules while preserving the autonomy of private law norms. The book compares the available causes of action, conditions of liability, and obstacles investors face when claiming damages and how they can benefit from the conduct of business rules. It demonstrates a hybridization of private law remedies resulting from the accommodation of the conduct of business rules into the private law discourse.

Format: Paperback / softback
Length: 432 pages
Publication date: 01 November 2021
Publisher: Springer Nature Switzerland AG

This comprehensive book delves into the intricate relationship between the EU investor protection regulations enshrined in MiFID and MiFID II and national contract and torts law. It explores how the conduct of business rules as implemented in national financial supervision legislation in private law extends to the issue of enforcement, and critically assesses this interaction from the perspective of EU law. In particular, the conclusions reached in this book will deepen readers' understanding of the interplay between the conduct of business rules and private law norms governing a firm's liability to pay damages, such as duty of care, attributability of damage, causation, contributory negligence, and limitation.

Furthermore, the book identifies the subordination and complementarity models to conceptualize the interaction between the conduct of business rules and private law norms. Moreover, the book challenges the view that civil courts are – or should be – forced to give private law effects to violation of the MiFID and MiFID II conduct of business rules in line with the subordination model. Instead, the complementarity model is advanced as the preferred approach to this interaction, considering what MiFID and MiFID II require from Member States in terms of their implementation, as well as the desirability of each model.

This model presupposes that courts should consider the conduct of business rules when adjudicating individual disputes, while preserving the autonomy of private law norms governing liability of investment firms towards clients.

To support its arguments, the book conducts an extensive analysis of case law from courts in Germany, the Netherlands, and England & Wales, as well as scholarly literature. It compares the available causes of action, the conditions of liability, and the obstacles investors face when pursuing claims against investment firms in these jurisdictions.

By examining these legal frameworks in detail, this book provides valuable insights into the complex dynamics between investor protection regulations, private law norms, and the enforcement mechanisms in place to safeguard the interests of investors. It is a must-read for legal professionals, policymakers, and scholars interested in the intersection of financial regulation.

Weight: 682g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030540036
Edition number: 1st ed. 2020