Reasons for publication
The assessment of suitability is one of the key requirements for investor protection in the MiFID II framework. It applies to the provision of investment advice (whether independent or not) and portfolio management. In accordance with the obligations set out in Article 25(2) of Directive 2014/65/2014 on Markets in Financial Instruments (MiFID II) and Articles 54 and 55 of the Commission Delegated Regulation (EU) 2017/565 (MiFID II Delegated Regulation), investment firms providing investment advice or portfolio management have to provide suitable personal recommendations to their clients or have to make suitable investment decisions on behalf of their clients.
On 13 July 2017, ESMA published a Consultation Paper (CP) with proposed draft guidelines which confirm and broaden the existing MiFID I guidelines on suitability, issued in 2012.
The consultation period closed on 13 October 2017. ESMA received 53 responses, 6 of which confidential. The answers received are
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