Understanding Changes in French Definition of “Reception and Transmission of Orders” (RTO MiFID Service) – Decree 2023-813

27th September 2023


Explore the impact of Decree 2023-813 on the French definition of RTO

In August 2023, Decree 2023-813 ushered in pivotal changes to the French definition of the MiFID service known as “reception and transmission of orders” (commonly abbreviated as “RTO”). These alterations, set to take effect on September 1, 2023, bear significant implications for the financial sector. 

Why the Modification? 

It’s essential to grasp that the RTO service has lacked a harmonized EU definition. Consequently, individual Member States have crafted their interpretations, resulting in divergent definitions across the European Union. 

Initially, the French interpretation of RTO included a distinctive condition tied to transmitting orders to an investment service provider (referred to as an “ISP”) located within the European Economic Area (EEA) or an equivalent entity in a third country. This condition represented a unique aspect of the French definition. 

To align with definitions in other EU Member States, Decree 2023-813 broadens the RTO service’s scope by eliminating the requirement concerning order transmission to an ISP in the EEA or a third-country equivalent entity. 

What Does This Mean Practically? 

In practical terms, the RTO service will now be considered provided when an entity receives and transmits orders relating to financial instruments (or carbon emissions units) on behalf of a third party to another person or entity. 

Importantly, this change means that certain activities that were previously unregulated may now fall under the RTO service category. Consequently, providers of these services will be subject to MiFID licensing requirements. The French regulatory authority, the AMF, emphasizes that receiving an order from a third party and transmitting it to another entity for transaction execution now qualifies as an RTO service, irrespective of the recipient entity’s quality. 

This shift prompts financial intermediaries and other stakeholders to carefully evaluate their existing operations to determine whether adjustments to their operational models or permission scopes are necessary. 

In conclusion, Decree 2023-813 has reshaped the landscape of the French MiFID service “reception and transmission of orders.” These changes, aimed at harmonizing the definition with EU standards, may have important implications for various players in the financial industry. Staying informed and adapting to these modifications is crucial to ensure compliance with the new regulatory framework. 

How Zeidler Group can help 

If you have any questions or require support, the Zeidler team is here to help. Our global team of professionals remains up to date on the latest legal, regulatory, and compliance changes affecting the asset management industry.  


Valentin Chantereau