From: RegTech Analyst
The European Securities and Markets Authority (ESMA) has clarified how investors should be protected under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).
ESMA has updated its Questions and Answers (Q&A) to include new answers on ‘MiFID practices for firms selling financial instruments subject to the BRRD resolution regime’.
The update provides clarification on topics such as sales of subordinated eligible liabilities and the assessment of suitability, whether Article 44a of BRRD 2 should be apply only if there is an active offering on the part of the firm, information to be collected from clients in order to comply with Article 44a(1) and 44a(2) of BRRD 2, calculation of 10% threshold referred to in Article 44a(2)(a) of BRRD 2 and monitoring of 10% threshold referred to in Article 44a(2)(a) of BRRD 2.
The Q&A also seeks to explain what happens if a transaction relating to subordinated eligible liabilities is deemed unsuitable by the firm, but the retail client wishes to proceed anyway.
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