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\"ESMA Q&A 1756 — Q&A — Suitability and appropriateness [Answer Published]\"\nanswer_id: ESMA_QA_1756\ntopic: \"Suitability\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFIR\"\nmifir_level3: true\nmica_level2: false\nlegal_basis: \"MiFIR\"\ndate: 10 October 2016\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1756\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 10 October 2016\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1756\"\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_1756: 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: \"2016-10-10\"\n  question_submitted_on: \"2016-10-10\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1756, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1756, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 10 Oct 2016 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 10 October 2016 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1756)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1756 — Q&A — Suitability and appropriateness \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1756 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 10 October 2016; question submitted 10 October 2016 |\n| **Legal basis** | MiFIR |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Suitability and appropriateness**\n\n### Question\n\nDoes the suitability report only have to be provided if the investment advice leads to a transaction?\n\n***\n\n### Answer\n\n\\[ESMA35-43-349 MiFID II Ch 2 Q&A 1\\]\n\nNo. A suitability report must be provided to a retail client when that client has been provided with investment advice, regardless of whether or not the advice is followed by a transaction.\n\nAccording to the second subparagraph of Article 25(6) of MiFID II, the firm shall, when providing investment advice, before the transaction is made, provide the client with a statement on suitability in a durable medium specifying the advice given and how that advice meets the preferences, objectives and other characteristics of the retail client.\n\nArticle 54(12) of the MiFID II Delegated Regulation states that firms shall provide a suitability report when providing investment advice. The report shall, inter alia, include an outline of the advice given and how the recommendation is suitable for the retail client.\n\nBy outlining that the report shall be given when providing investment advice, the implementing measures clarify that the suitability report has to be provided to the client irrespective of whether or not the advice is followed by a transaction. In fact, investment advice, as defined in Article 4(2)(4) of MiFID II does not require a recommendation to be followed by a transaction.\n\nThe wording in MiFID “before the transaction is made”, is therefore a clarification of when the report has to be provided, but does not mean that the advice has to be followed by a transaction.\n\nThis is line with the purpose of the second subparagraph of Article 25(6) of MiFID II that states that the suitability report serves the purpose of proving whether the recommendation given was in fact suitable for the client.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1756)\n"}