ESMA publishes final report on MiFID II appropriateness and execution-only requirements

The European Securities and Markets Authority (ESMA) has published the final report on its Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements that constitute an important element of investor protection in the provision of investment services other than investment advice or portfolio management (‘non-advised services’).

Under MiFID II, investment firms providing non-advised services are required to request information on the knowledge and experience of clients to assess whether the investment service or product envisaged is appropriate and to issue a warning in case it is not. The execution-only framework allows for an exemption to this assessment in certain conditions.

The Guidelin