ESMA_QA_607
Status: ⏳ Pending / Forwarded to EC
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/607
Regulatory Context
Regulation : MIF2
Level 1 Regulation: Directive 2014/65/EU - Markets in Financial Instruments Directive (MiFID II)
Level 2 Regulation: Regulation 2017/565 - MiFID II Delegated Regulation
Level 3 Regulation: ESMA35-43-869 - Guidelines - Suitability (MiFID)
Topic: Suitability
Subject Matter: Suitability
Question
Submission Date: 25 October 2022
Per article 54(3) in Delegated Regulation, for Investment Services offered to a professional client you are entitled to assume client has the necessary level of knowledge and experience. However per article 54(6), knowledge and experience is required from the natural person representing the legal entity on the Suitability Questionnaire. Isn’t that contradicting as the professional clients per Annex II of MiFID II Directive are legal entities and is interpreted that 54(3) is never applicable and all parts of Suitability Questionnaire in one way or another need to be completed?
ESMA Answer
Original language
Dear Madam,
Thank you for contacting ESMA. ESMA is committed to replying to questions from market participants and to develop them to Q&As. However, due to the significant number of questions received, ESMA is not in the position to address all issues raised by market participants and has to prioritise them. The selection of questions to be developed into Q&As through this web-based tool is done taking into account a number of criteria related to the level of public attention and relevance of the topic from an overall EU perspective, also taking into account the type of stakeholder represented. Having carefully considered your question and considering the above criteria and current number of questions that have been addressed to us recently, ESMA will unfortunately not be in a position to develop a Q/A in relation to this question. Despite not being able to provide a Q&A on this occasion ESMA welcomes questions from you also in the future, and invites you to take part of numerous Q&As and other guidance the ESMA has developed to seek guidance among that material. Regards, ESMA
This document was automatically extracted from the ESMA EMIR Q&A database.