Regulatory Alerts2025-03-26
Added · Updated
Guidelines on certain aspects of the suitability requirements and format of the periodic statement for portfolio management activities under MiCA
ESMA issues guidelines requiring crypto-asset service providers to implement specific arrangements for assessing client suitability and formatting periodic statements for portfolio management activities. Providers must clearly inform clients about the assessment's purpose, ensure questionnaires are designed to prevent misleading answers, and collect proportionate information regarding financial situation, investment objectives, and understanding of crypto-asset risks. Additionally, providers offering robo-advice must disclose the extent of human involvement and explain how automated systems determine suitability. Competent authorities must notify ESMA within two months of publication whether they comply with these guidelines.