Summary of CySEC's Circular C579
Memo #33-2023
CySEC Circular No: C579
Date: 06/06/2023
Subject: ESMA35-43-3172 - Guidelines on certain aspects of the MiFID II suitability requirements
Purpose: To inform the CIFs, UCITS MC and AIFMs that ESMA published the Guidelines on certain aspects of the MiFID II suitability requirements.
In Summary:
CySEC has issued the Circular C579 on 06/06/2023 to inform Cyprus Investment Firms (CIFs), UCITS management companies when providing the investment services of individual portfolio management or non-core services (within the meaning of Article 6(3)(a) and (b)(i) of UCITS Directive) and the Alternative Investment Fund Managers when providing the investment services of individual portfolio management or non-core services (within the meaning of Article 6(4)(a) and (b)(i) of the AIFMD), that the European Securities and Markets Authority (ESMA) published, on 04/04/2023, the Guidelines on certain aspects of the MiFID II suitability requirements (the ‘Guidelines’), translated in all official languages of the EU.
CySEC notes that the Guidelines apply in relation to Article 25(2) of MiFID II and Articles 54 and 55 of MiFID II Delegated Regulation and apply to the provision of the investment services listed in Section A of Annex I of MiFID II, that is investment advice and portfolio management.
CySEC further notes that the Guidelines principally address situations where services are provided to retail clients and 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 and of Articles 54 and 55 of the MiFID II Delegated Regulation.
The Guidelines apply as from 04/08/2023.
In addition, CySEC informs that the previous ESMA guidelines issued under MiFID II {ESMA35-43-1163} as well as the CySEC’s circular C290 {Guidelines on certain aspects of the MiFID II suitability requirements} will cease to apply on the same date.
CySEC further informs that it has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach and urges the Regulated Entities to carefully study the Guidelines and ensure that they fully comply with them.
The ESMA Guidelines on certain aspects of the MiFID II suitability requirements can be found on the following link:
Read the CySEC Circular C579
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