Regulatory Alerts2018-11-06
Guidelines on certain aspects of MiFID requirements relating to appropriateness
The European Securities and Markets Authority (ESMA) issued these guidelines to clarify the application of MiFID II appropriateness requirements for investment advice and portfolio management services. The document mandates firms to implement robust client data collection policies, ensure accurate risk profiling through tailored questionnaires, and adapt their assessment processes for both traditional and robotised advice models. By standardising how firms evaluate client knowledge, financial capacity, and investment objectives, ESMA aims to strengthen investor protection and ensure consistent supervisory practices across the EU.
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