In accordance with Article 16(2) of the ESMA Regulation, this paper sets out for consultation draft ESMA guidelines on certain aspects of the Markets in Financial Instruments Directive (MiFID) suitability requirements.
The purpose of these draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the MiFID suitability requirements. They focus mainly on the need for firms to have in place appropriate policies and procedures in order to know their clients when recommending suitable investment choices. This should help investment firms improve their implementation of the requirements and strengthen investor protection.
The guidelines do not address all issues relating to the suitability requirements or to the related obligations of investment firms. For example, they do not address client information requirements generally, internal controls, or organisational requirements regarding the launch of products that firms should comply with to ensure that the client base of the firm includes clients for whom any newly approved products would be suitable.
© ESMA
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