The European Securities and Markets Authority (ESMA) has published an updated version of its supervisory briefing on MiFID II suitability requirements. This publication is an updated version of ESMA’s 2012 supervisory briefing and takes into account the content of ESMA’s guidelines on certain aspects of the MIFID II suitability requirements published on 28 May 2018.
This supervisory briefing covers the following topics:
- determining situations where the suitability assessment is required;
- information to clients about the purpose of the suitability assessment;
- obtaining information from clients;
- arrangements necessary to understand investment products;
- arrangements necessary to understand the suitability of an investment;
- suitability report;
- qualifications of firm staff; and
- record keeping.
This supervisory briefing is aimed at competent authorities as defined in MiFID II. It is also meant to give market participants indications of compliant implementation of the MiFID II suitability provisions. The purpose of this supervisory briefing is to promote common supervisory approaches and practices in the application of the MiFID II suitability rules.