Answer 3

In order to comply with Article 44a(1) of [BRRD 2] firms must perform a suitability test in accordance with Article 25(2) of MiFID II. Therefore, for this purpose, firms must comply with the relevant MiFID II requirements on the collection of information from clients (Article 25(2) of MIFID II and Articles 54 and 55 of the MiFID II Delegation Regulation [See also ESMA guidelines on certain aspects of the MiFID II suitability requirements [Ref: ESMA35-43-869 of 28 May 2018]]).

Article 44a(2) of BRRD2 sets out additional controls that firms must perform, beyond the previously mentioned suitability assessment, when selling SELS to retail clients. In order to comply with this Article, firms’policies and procedures shall enable them to collectfrom the retail clientand assessthe information on the retail client’s financial instru

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