Q&A · ESMA
Suitability and appropriateness
Answered
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The suitability report must explain on an individual basis how the recommendation matches the client's objectives, risk tolerance, capacity for loss, knowledge and experience, referring to the client information used; tick-box or generic statements such as 'matches your risk tolerance' are not enough.
Details
| Reference | ESMA_QA_1765 |
|---|---|
| Issuer | ESMA |
| Published | 28 Mar 2019 |
| Answered | 28 Mar 2019 |
| Submitted | 28 Mar 2019 |
| ESMA topics | Suitability |
| Earlier Q&A document | ESMA35-43-349 MiFID II Investor protection Q&As, Ch 2, question 10 |
Provisions it relates to
- Article 25 MiFID II · Assessment of suitability and appropriateness and reporting to clientsInferred · 95%
- MiFIR (whole act)Explicit reference