ESMA Q&A 1759 — Q&A — Suitability and appropriateness [Answer Published]

Financial servicesLevel 3Q&AMiFID IIAnsweredOfficial source

Suitability and appropriateness

Question

Can the suitability report be sent together with the report due when carrying out an order on behalf of a client other than for portfolio management?

Answer

[ESMA 35-43-349 MiIFID II Investor and protection Q&As ch 2, question 4]

According to Article 25(6) MiFID II, the suitability report has to be provided to the client before the transaction is made. Therefore, it cannot be sent together with the report that is due when carrying out an order on behalf of a client, which has to be provided after the order was carried out.

Different requirements apply in situations described in the third subparagraph of Article 25(6) of MiFID II (i.e. when the agreement is concluded using a means of distance communication) In these cases the suitability report could be sent together with the report about the transaction, but without undue delay and all the relevant requirements have to be fulfilled.

Source: ESMA original document