Updated ESMA Guidelines On MiFID II Product Governance Requirements

On 3 August 2023, ESMA issued updated Guidelines on MiFID II product governance requirements ("Guidelines"), enhancing the MiFID II investor protection framework. On 14 September 2023, the CSSF published Circular CSSF 23/840, thereby formally informing the in-scope entities under its supervision that it would apply the Guidelines as from their date of application, namely 3 October 2023.

The Guidelines recast and replace the previous ESMA Guidelines on this topic.

The main objective of the Guidelines is to further emphasise the importance of understanding the needs and characteristics of the target market and of ensuring that products are designed and distributed accordingly.