ESMA has updated its Q&As on various MiFID issues including reverse solicitation. With a no-deal Brexit still a very real possibility, many UK firms will be considering reverse solicitation as a short term 'solution' to continuing to service clients in the EU in the absence of passporting rights.

The update makes it clear that a narrow view will be taken of when third country firms are purporting to provide services into the EU 'at the own exclusive initiative of the client'.

UK firms should therefore tread carefully if seeking to provide services on this basis and undertake a detailed analysis of proposed activities and systems and controls before doing so.