Regulatory Alerts2022-07-18
Added · Updated
Consultation on Review of Guidelines on MiFID II Product Governance Requirements
ESMA proposes updates to the MiFID II product governance guidelines, including aligning sustainability-related objectives with sustainability preferences and expanding guidance on clustering approaches for target market assessments. The consultation clarifies distribution strategy requirements, mandates diligent target market assessments for complex products like CFDs, and refines periodic review obligations, such as allowing less frequent reviews for simpler products and exempting distributors no longer offering a product from further reviews. Investment firms and credit institutions manufacturing or distributing financial instruments are invited to submit feedback by 7 October 2022.