The suitability requirements were introduced by ESMA under MiFID to enhance investor protection by ensuring that firms which provide investment advice and portfolio management act in the clients’ best interests. Suitability has to be assessed against clients’ knowledge and experience, financial situation and investment objectives. In order to achieve this, investment firms have to obtain the necessary information from clients.
Guidelines on certain aspects of the MiFID suitability requirements
MiFID Suitability Requirements Peer Review Report
ESMA consultation on certain aspects of the MIFiD II suitability requirements