ESMA publish final guidelines on MiFID II suitability requirements

MiFID II suitability requirements amendments

The main MiFID II amendments reflected in the guidelines on the topic of sustainability are:

• Information to clients on the sustainability preferences
  • Firms will need to help clients understand the concept of sustainability preferences and explain the difference between products with and without sustainability features in a clear manner and avoiding technical language;
• Collection of information from clients on sustainability preferences
  • Firms will need to collect information from clients on their preferences in relation to the different types of sustainable investment products and to what extent they want to invest in these products;
• Assessment of sustainability preferences
  • Once the firm has identified a range of suitable products for client, in accordance with the criteria of knowledge and experience, financial situation and other investment objectives, the firm shall identify the product(s) that fulfil the client’s sustainability preferences; and
• Organizational requirements
  • Firms will need to give staff appropriate training on sustainability topics and keep appropriate records of the sustainability preferences of the client (if any) and of any updates of these preferences.

To read the full publication please visit the ESMA website.

To find out how Waystone can help with your MiFID II requirements, reach out to our European Solutions team.

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