On 28 May 2018, the European Securities and Markets Authority (ESMA) published a final report on guidelines on certain aspects of the MiFID II suitability requirements.  The final report summarises and analyses the responses to ESMA’s July 2017 consultation paper which contained a draft version of the guidelines.

The purpose of the guidelines is to clarify the application of certain aspects of the MiFID II suitability requirements in order to ensure the common, uniform and consistent application of Article 25(2) of MiFID II and of Articles 54 and 55 of the MiFID II Delegated Regulation.

ESMA expects the guidelines to promote greater convergence in the interpretation of, and supervisory approaches to, the MiFID II suitability requirements, by emphasising a number of important issues, and thereby enhancing the value of existing standards. By helping to ensure that firms comply with regulatory standards, ESMA anticipates a corresponding strengthening of investor protection.

Member State national competent authorities must notify ESMA whether they comply or intend to comply with the guidelines as appropriate, stating their reasons for non-compliance where they do not comply or do not intend to comply, within two months of the date of publication of the guidelines on ESMA’s website in all official languages of the EU. Firms are not required to report whether they comply with the guidelines.