Esma sheds light on Mifid 2 suitability requirements

The European Securities and Markets Authority (Esma) has published a consultation paper on draft guidelines to clarify certain aspects of the suitability requirements under the latest Markets in Financial Instruments Directive (Mifid 2). The requirements were introduced to enhance investor protection by ensuring that companies providing investment advice and portfolio management act in the clients' best interests. Suitability has to be assessed against client knowledge and experience, financial