New Rule: EU Final MiFID Suitability and Compliance Guidance

by Nick Paraskeva on July 13, 2012

The following is one of this week’s new rules, courtesy of Nick Paraskeva at Reg Room. Click here for daily updates on new rules from Reg Room.

EU Final MiFID Suitability and Compliance Guidance

On Jul. 6, ESMA issued final guidance on EU MiFID requirements for suitability and the compliance function.

Suitability

•Suitability of advice and portfolio management in Markets in financial instruments directive.

•Requires firm policies, procedures to know their clients, to recommend suitable investments.

•Obtain client investment objectives, holding period, risk profile and purpose of the investment.

Based in New York City, Reg-Room, LLC, provides regulatory information services, monitoring and consultancy to the financial services industry in the US and internationally.Nick Paraskeva is the principal and founder of Reg-Room. Nick has twenty five years experience in Compliance and Regulation, including eleven years at Citigroup, where he was senior Vice president of Global Regulatory Risk in New York. Nick can be reached at Nick.Paraskeva@reg-room.com.

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