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\"ESMA Q&A 1128 — Q&A — MiFID practices for firms selling financial [Answer Published]\"\nshortTitle: \"ESMA Q&A 1128 — Q&A — MiFID practices for firms selling financial [Answer Published]\"\nanswer_id: ESMA_QA_1128\ntopic: \"Information to clients on topics other than costs and charges\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 18 February 2020\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1128\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 18 February 2020\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1128\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1128: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2020-02-18\"\n  question_submitted_on: \"2020-02-18\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1128, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1128, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 18 Feb 2020 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 18 February 2020 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1128)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1128 — Q&A — MiFID practices for firms selling financial \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1128 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 18 February 2020; question submitted 18 February 2020 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**MiFID practices for firms selling financial instruments subject to the BRRD resolution regime**\n\n### Question\n\nShould all sales of subordinated eligible liabilities to retail clients be subject to a suitability test or should such a test be performed only in the cases where one is due under MiFID II (i.e. where investment advice or portfolio management services are provided)?\n\n***\n\n### Answer\n\n\\[ESMA35-43-439 Investor protection BRRD regime Q&A1\\]\n\nAs of 28 December 2020\\[1\\], all sales of subordinated eligible liabilities (“SELs”) issued on or after that date to retail clients must be subject to the performance by the seller of a suitability test, in accordance with Article 25(2) of MiFID II and of Article 44a of the BRRD 2, independently of the type of investment service provided to sell the SELs (including self-placement). Prior to that date, the suitability test is required only when investment advice or portfolio management are provided, unless where Member States have chosen to apply Article 44a of the BRRD 2 to liabilities issued before 28 December 2020.\n\n\\[1\\] Date of entry into application of BRRD 2.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1128)\n"}