{"id":"circulars/cssf-22-817","title":"Circular CSSF 22/817","type":"circular","date":"2022-06-27","kind":"circular","html":"<p>Circular CSSF 22/817 is a CSSF circular, published 27 June 2022. Subject: Application of the Guidelines of the European Securities and Markets Authority on certain aspects of the MiFID II appropriateness and execution-only requirements (ESMA35-43-3006).</p>\n<p>Relevant for: AIFMs, Credit institutions, Investment firms.</p>\n<p>Main topic: MiFID II.</p>\n<h2>Text</h2>\n<p>Circular CSSF 22/817 Application of the Guidelines of the European Securities and Markets Authority on certain aspects of the MiFID II appropriateness and execution-only requirements (ESMA35-433006)</p>\n<p>Circular CSSF 22/817 Re: Application of the Guidelines of the European Securities and Markets Authority on certain aspects of the MiFID II appropriateness and execution-only requirements (ESMA35-43-3006)</p>\n<p>Luxembourg, 27 June 2022</p>\n<p>To all investment firms, credit</p>\n<p>Ladies and Gentlemen, Purpose of the Circular</p>\n<p>institutions, and external</p>\n<p>The purpose of this circular is to inform you that the CSSF, in its capacity as</p>\n<p>alternative investment fund</p>\n<p>competent authority, will apply the Guidelines of the European Securities and</p>\n<p>managers authorised to</p>\n<p>Markets Authority on certain aspects of the MiFID II appropriateness and</p>\n<p>provide the service of reception</p>\n<p>execution-only requirements (ESMA35-43-3006) (the “Guidelines”) from 12</p>\n<p>and transmission of orders in</p>\n<p>October 2022 onwards. The CSSF will integrate the Guidelines, issued with a</p>\n<p>relation to financial</p>\n<p>view to promoting supervisory convergence in this field at European level, into</p>\n<p>instruments</p>\n<p>its administrative practice and regulatory approach. The Guidelines The Guidelines are issued by ESMA in accordance with Article 16(1) of the ESMA Regulation. The purpose of the Guidelines is to clarify the application of certain aspects of the MiFID II appropriateness and execution-only requirements in order to ensure the common, uniform, and consistent application of, respectively, Article 25(3) of MiFID II and of Articles 55 and 56 of the MiFID II Delegated Regulation as well as of Article 25(4) of MiFID II and of Article 57 of the MiFID II Delegated Regulation. The Guidelines are attached to this circular and are available on ESMA’s website (<a href=\"http://www.esma.europa.eu\" target=\"_blank\" rel=\"noreferrer\">www.esma.europa.eu</a>). Scope of application These guidelines shall apply to investment firms (as defined in Article 4(1)(1) of MiFID II) and credit institutions (as defined in Article 4(1)(27) of MIFID II) when (i) providing investment services (within the meaning of Article 4(1)(2) of MiFID II) other than investment advice and portfolio management or (ii) selling structured deposits, and external alternative investment fund managers (as defined in Article 5(1)(a) of the AIFMD) when providing the service of reception and transmission of orders in relation to financial instruments referred to in Article 6(4)(b)(iii) of the AIFMD. Date of application The Guidelines shall apply from 12 October 2022 onwards.</p>\n<p>Yours faithfully,</p>\n<p>Françoise KAUTHEN</p>\n<p>Claude MARX</p>\n<p>Annex: ESMA Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements</p>\n<p>Guidelines On certain aspects of the MiFID II appropriateness and execution-only requirements</p>\n<p>12-04-2022 | ESMA35-43-3006</p>\n<p>ESMA PUBLIC USE 12-04-2022 ESMA35-43-3006</p>\n<p>Table of Contents I.</p>\n<p>Scope .................................................................................................................................. 3</p>\n<p>II.</p>\n<p>Legislative references and definitions ................................................................................ 4</p>\n<p>III. Purpose ............................................................................................................................... 5 IV. Compliance and reporting obligations ................................................................................ 5 V. Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements...............................................................................................................................</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/circular-cssf-22-817/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf22_817eng.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}