{"id":"circulars/cssf-23-840","title":"Circular CSSF 23/840","type":"circular","date":"2023-09-14","kind":"circular","html":"

Circular CSSF 23/840 is a CSSF circular, published 14 September 2023 and updated 15 September 2023. Subject: Application of the Guidelines of the European Securities and Markets Authority on MiFID II product governance requirements.

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Relevant for: AIFMs, Consumer protection, Credit institutions, Investment firms, Management companies - Chapter 15.

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Main topic: MiFID II, Sustainable finance. Keywords: Investor protection.

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Text

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Circular CSSF 23/840 Application of the Guidelines of the European Securities and Markets Authority on MiFID II product governance requirements To all investment firms and credit institutions providing investment services or performing investment activities; investment firms and credit institutions selling or advising clients in relation to structured deposits; UCITS management companies providing the investment services of portfolio management (in accordance with mandates given by investors on a discretionary, client-by-client basis) or investment advice; and external alternative investment fund managers providing the investment services of portfolio management (in accordance with mandates given by investors on a discretionary, client-by-client basis), investment advice or reception and transmission of orders.

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Luxembourg, 14 September 2023 Ladies and Gentlemen, The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, will apply the Guidelines of the European Securities and Markets Authority (ESMA) on MiFID II 1 product governance requirements (ESMA35-43-3448) (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 practice and regulatory approach.

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  1. The 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 product governance requirements in order to ensure the common, uniform, and consistent application of Articles 9(3), 16(3), 16(6), 24(1) and 24(2) of MiFID II 3 and of Articles 9 and 10 of the MiFID II Delegated Directive 4, 5. The
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Guidelines

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are

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attached

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this

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circular

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and

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are

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available

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ESMA’s

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website

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(https://www.esma.europa.eu/sites/default/files/2023-08/ESMA35-433448_Guidelines_on_product_governance.pdf).

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1 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended. 2 Regulation (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. 3

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Article 38-1(1), (6), (7) and (8), Article 37-1(2) and (6), Article 37-3(1), first subparagraph and Article 37-3(1a) of the Law of 5 April 1993 on the financial sector, as amended.

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4 Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits, as amended. 5 Articles 8 and 9 of the Grand-ducal Regulation of 30 May 2018 on the protection of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits, as amended.

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  1. Scope of application These Guidelines shall apply to investment firms (as defined in Article 4(1)(1) of MiFID II 6) and credit institutions (as defined in Article 4(1)(27) of MIFID II 7) when providing investment services or performing investment activities (as defined in Article 4(1)(2) of MiFID II 8), and when selling or advising clients in relation to structured deposits.
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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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