Suitability and Appropriateness Assessment on Product Governance
It is evident that the product governance requirements prior to distribution are interrelated with a -diligent- suitability and appropriateness assessment, under the MiFID II requirements. Distributors have the ultimate responsibility and obligation to identify the target market of the investment products prior to distribution, while they must ensure that the products are suitable to the needs, characteristics, and objectives of the end clients.
Carrying on from our previous article ‘The Enhanced Product Governance under MiFID II’, in this commentary, we aim to provide more clarity on what information is required for the firms to conduct adequate suitability and appropriateness assessment, prior to the onboarding of the client and of the product distribution.
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