ESMA publishes MiFID II supervisory briefing on appropriateness and execution-only

ESMA publishes MiFID II supervisory briefing on appropriateness and execution-only

15:48 13 mei in Geen onderdeel van een categorie
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Context:
The content of this supervisory briefing is not subject to any ‘comply or explain’ mechanism for National Competent Authorities (NCAs) and is non-binding. The main purpose is to contribute to a common supervisory culture by promoting common supervisory approaches and practices.

The comments and questions in this briefing are worthwhile reading and could be used as a ‘check list’ in your organisation, in the context of non-advised services, i.e. investment services other than portfolio management and investment advice (see below the list of topics covered).

Official communication from ESMA
The European Securities and Markets Authority (ESMA) has published yesterday an updated version of its supervisory briefing on MiFID II appropriateness requirements.

This supervisory briefing is an updated version of ESMA’s 2012 supervisory briefing on the same topic and takes into account the new version of ESMA’s guidelines on suitability published on 28 May 2018 with respect to aspects also relevant to the appropriateness rules.

This supervisory briefing covers the following topics:

·  Determining situations where the appropriateness assessment is required;

·  Obtaining information from clients;

·  Assessment of appropriateness;

·  Warnings to clients;

·  Qualification of firm’s staff; and

·  Record-keeping.

This supervisory briefing is aimed at competent authorities as defined in MiFID II. It also aims to give market participants indications of compliant implementation of the MiFID II appropriateness provisions. The purpose of this supervisory briefing is to promote common supervisory approaches and practices in the application of the MiFID II appropriateness rules.