View source for Template:Prior consent and prior express consent


====[[Prior consent]] and [[prior express consent]]====
You see, there's [[prior consent]] and [[prior express consent|prior '''express''' consent]]. You ready for this? then let {{t|CESR}} explain:<ref>See: {{tag|CESR}}'s "[[Media:CESR Best Execution QA 07_320.pdf|Best Execution under MiFID]]" Questions and Answers document of May 2007 (CESR/07-320)</ref>

{{quote|'''''Q20 How do clients consent to the execution policy?''''' <br>
20.1 An investment firm that executes orders or decisions to deal should obtain the [[prior consent]] of its clients to its execution policy. CESR observes that for consent to be valid, the legal provisions of the relevant Member State relating to the giving of consent must be satisfied, without prejudice to what is said in Q14 through Q16 about the information that the firm should provide to clients. <br>
20.2 '''A firm should obtain the [[prior express consent]] of its clients before executing their orders outside a [[regulated market]] or [[MTF|MTF]]'''. <br>
20.3 There are no comparable requirements for firms when they transmit or place orders with other entities for execution but do not execute orders or decisions to deal themselves. <br>}}

{{quote|'''''Q21 What is the difference between "consent" and "express consent"?'''''<br>
21.1 Where {{tag|MiFID}} requires “[[prior express consent]]”, CESR considers that this entails '''an actual demonstration of consent by the client which may be provided by signature in writing or an equivalent means''' (electronic signature), by a click on a web page or orally by telephone or in person, with appropriate record keeping in each case. <br>}}

[[Prior consent]], on the other hand, does not. You can deem it by conduct — the placement of an order, for example. Or a nod, wink, waggle of the head or unambiguous bodily action.