29 August 2017
Re: Suitability Themed Review
Dear CEO,
The Central Bank of Ireland (the “Central Bank”) recently completed a themed review to examine the suitability processes of investment firms [MiFID firms, MiFID branches, AIFMs and UCITS Managers with Individual Portfolio Management.] (the “Firms”). Suitability is the process by which firms take all reasonable steps to ensure that a client’s investments align to their investment objectives and personal circumstances. The review focused on the information-gathering phase of the suitability process and the Firms were assessed for compliance with the ESMA “Guidelines on certain aspects of the MiFID suitability requirements” (the “Guidelines”) which clarify the application of the suitability requirements outlined in Regulations 76(3) and 94 of the MiFID Regulations [European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. No. 60 of 2007) ]. The purpose of this letter is to provide feedback on the
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