European Securities And Markets Authority Issues Final Guidelines On MiFID II Suitability

On May 28, 2018, ESMA published a Final Report setting out finalized Guidelines on aspects of the suitability requirements under the revised Markets in Financial Instruments Directive. ESMA consulted previously on a draft version of the Guidelines between July and October 2017.

The finalized Guidelines largely confirm ESMA's previous 2012 guidelines on MiFID I, but have a broader scope and ESMA has added clarifications and refinements where necessary.

The finalized Guidelines have been broadened to reflect the suitability requirements under MiFID II by:

1. considering technological developments of the advisory market, notably the increasing use of automated or semi-automated systems for the provision of investment advice or portfolio management (robo-advice);