Q&A · ESMA

Suitability and appropriateness

Answered

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AI-generated Summary

Portfolio managers serving retail clients should meet the Article 25(6) MiFID II duty to explain periodically how the investments meet the client's preferences and objectives within the Article 60 ex-post periodic report, on the same deadlines, assessing the portfolio as a whole, with the format left to the firm.

Details

Reference	ESMA_QA_1764
Issuer	ESMA
Published	18 Dec 2017
Answered	18 Dec 2017
Submitted	18 Dec 2017
ESMA topics	Suitability
Earlier Q&A document	ESMA 35-43-349 MiFID II Investor protection Q&As Ch 2, question 9

Provisions it relates to

Article 25 MiFID II · Assessment of suitability and appropriateness and reporting to clients
MiFID II
Explicit reference · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference · 90%
Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.