Publication of final Guidelines on MiFID II suitability
The European Securities and Markets Authority (ESMA) has published its final Guidelines on certain aspects of the MiFID II suitability requirements on September 23, 2022.
The guidelines will be applicable six months (instead of two months as initially planned) after the date of publication of the guidelines on ESMA’s website in all EU official languages. The publication of the translations will trigger a two-month period during which national competent authorities must notify ESMA whether they comply or intend to comply with the Guidelines.
ESMA uses a simplified approach for collecting client sustainability preferences and further aligns its final MIFIDII1 guidelines on suitability with EIOPA’s2 final guidelines. The final guidelines are less prescriptive than the drafted guidelines (use of should/could).
The guidelines aim to promote greater convergence in the interpretation of, and supervisory approaches to, the MIFID II suitability requirements and to ensure consistency with all other relevant EU legislation related to sustainability (Taxonomy, SFDR3).
1MIFID: Markets In Financial Instruments Directive
2EIOPA: European Insurance and Occupational Pensions Authority
3SFDR: Sustainable Finance Disclosure Regulation