Article 44a of the BRRD 2 has introduced new requirements for the ‘Selling of subordinated eligible liabilities (SELs) to retail clients’. The Q&As below provide practical indications for the application of Article 44a of the BRRD2 and the relevant MiFID II requirements (in particular to the assessment of suitability) to which Article 44a cross-refers. When reading the Q&As below, it is important to note that the BRRD 2 will enter into application on 28 December 2020 [Article 44a(7) of the BRRD 2 allows Member States to apply the requirements of Article 44a to SELs issued before 28 December 2020. When reading these Q&As, firms should take into account choices made by Member States in the transposition of Article 44a(7) of the BRRD 2.] and that, according to the BRRD 2, Member States may choose to apply some derogations [The use of these derogationsby Member States might therefore affect the relevance of these Q&As for the Member States concerned.], not ably:

- the derogation set out in Article 44a(5) of the BRRD 2 and therefore not apply the requirement set out in paragraphs 1 to 4 of Article 44a; and/or