The European Association of Corporate Treasurers has responded to the ESMA Consultation Paper 'Guidelines on certain aspects of the MiFID suitability requirements (ESMA/2011/445)'.
EACT considers that the current presumption covering the professional client’s knowledge and experience for the purpose of the suitability tests (according to the article 35 of the MiFID Implementing Directive) should be modified for the following reason: in order to comply with the conduct of business rules to clients, the investment firms should apply a duty of information adapted to the categorisation of the client and the complexity of the financial instruments and not presume systematically the professional client has the knowledge and experience of the financial instruments and the risks it entail.
Full response
© EACT
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