Q&A · ESMA
Suitability and appropriateness
Answered
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When advising, firms may recommend only suitable instruments and must apply suitability to every decision to buy, hold or sell; they must not steer a client to buy an unsuitable product 'on their own initiative' or alter the client's profile to make it fit, as ESMA's case examples illustrate.
Details
| Reference | ESMA_QA_1761 |
|---|---|
| Issuer | ESMA |
| Published | 10 Oct 2016 |
| Answered | 10 Oct 2016 |
| Submitted | 10 Oct 2016 |
| ESMA topics | Suitability |
| Earlier Q&A document | ESMA35-43-349 MiFID II Investor protection Q&As, ch. 2 question 6 |
Provisions it relates to
- Article 25 MiFID II · Assessment of suitability and appropriateness and reporting to clientsInferred · 95%
- MiFID II (whole act)Explicit reference