Regulatory Alerts2022-10-06
Added · Updated
ESMA Final Report on Guidelines on MiFID II Suitability Requirements
Investment firms and credit institutions must integrate sustainability factors into their suitability policies, including explaining sustainability preferences to clients in clear language and collecting information on client preferences for sustainable products. Firms are required to assess products against these preferences, provide staff training on sustainability topics, and maintain records of suitability assessments and any adaptations to client preferences. The revised guidelines apply six months after publication on ESMA's website, replacing the 2018 guidelines, while legal requirements under Commission Delegated Regulation (EU) 2021/1253 have been mandatory since 2 August 2022.