Circular CSSF 23/835 is a CSSF circular, published 16 May 2023 and updated 24 May 2023. Subject: Application of the Guidelines of the European Securities and Markets Authority on certain aspects of the MiFID II suitability requirements.
\nLegal basis: Law of 5 April 1993 on the financial sector.
\nRelevant for: AIFMs, Consumer protection, Credit institutions, Investment firms, Management companies - Chapter 15.
\nMain topic: MiFID II, Sustainable finance. Keywords: Investor protection.
\nCircular CSSF 23/835 Re: Application of the Guidelines of the European Securities and Markets Authority on certain aspects of the MiFID II suitability requirements
\nLuxembourg, 16 May 2023
\nLadies and Gentlemen, The purpose of this circular is to inform you that the CSSF, in its capacity as
\nTo all investment firms, credit
\ncompetent authority, will apply the Guidelines of the European Securities and
\ninstitutions, UCITS
\nMarkets Authority (ESMA) on certain aspects of the MiFID II 1 suitability
\nmanagement companies and external alternative investment fund managers authorised to
\nrequirements (ESMA35-43-3172) (the “Guidelines”) from 3 October 2023 onwards. The CSSF will integrate the Guidelines, issued with a view to promoting supervisory convergence in this field at European level, into its administrative
\nprovide the services of
\npractice and regulatory approach.
\ninvestment advice or portfolio management
\nThe Guidelines The Guidelines are issued by ESMA in accordance with Article 16(1) of the ESMA Regulation 2. The purpose of the Guidelines is to clarify the application of certain aspects of the MiFID II suitability requirements in order to ensure the common, uniform, and consistent application of Article 25(2) of MiFID II 3 and of Articles 54 and 55 of the MiFID II Delegated Regulation 4. The Guidelines are attached to this circular and are available on ESMA’s website (https://www.esma.europa.eu/sites/default/files/2023-04/ESMA35-433172_Guidelines_on_certain_aspects_of_the_MiFID_II_suitability_requirement s.pdf).
\nScope of application These guidelines shall apply to investment firms (as defined in Article 4(1)(1) of MiFID II 5) and credit institutions (as defined in Article 4(1)(27) of MIFID II 6) when providing the investment services (within the meaning of Article 4(1)(2)
\nDirective 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended
\nRegulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), as amended
\nArticle 37-3(4) of the Law of 5 April 1993 on the financial sector, as amended
\nCommission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive, as amended
\nArticle 1(9) of the Law of 5 April 1993 on the financial sector, as amended
\nArticle 1(12) of the Law of 5 April 1993 on the financial sector, as amended
\nof MiFID II 7) of portfolio management or investment advice, or when selling or advising clients in relation to structured deposits, and to UCITS management companies (as defined in Article 2(1)(b) of the UCITS Directive 8, 9) and external alternative investment fund managers (as defined in Article 5(1)(a) of AIFMD 10, 11) when providing the services of individual portfolio management or investment advice referred to in Article 6(3)(a) and (b)(i) of the UCITS Directive 12 and Article 6(4)(a) and (b)(i) of AIFMD 13 respectively.
\nDate of application The Guidelines and this circular shall apply from 3 October 2023 onwards. The previous ESMA guidelines on this topic 14 will cease to apply on the same date.
\nFrançoise KAUTHEN
\nClaude MARX
\nAnnex:
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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