Circulaire CSSF 23/835

The present circular aims to notify recipients that the CSSF, as the competent authority, will implement the ESMA Guidelines (ESMA35-43-3172) on specific aspects of the MiFID II suitability requirements from 3 October 2023 onwards.
These Guidelines, issued with the intention of fostering supervisory convergence across Europe, will be incorporated into the CSSF’s administrative practices and regulatory approach.
The Guidelines, issued by ESMA in accordance with Article 16(1) of the ESMA Regulation, serve the purpose of elucidating the application of certain aspects of the MiFID II suitability requirements. Their objective is to ensure the consistent, uniform, and widespread implementation of Article 25(2) of MiFID II and Articles 54 and 55 of the MiFID II Delegated Regulation. The Guidelines are enclosed with the circular and can also be accessed on ESMA’s website.
The scope of application for these guidelines encompasses investment firms and credit institutions when providing investment services, such as portfolio management, investment advice, and the sale or advice of clients regarding structured deposits. Additionally, the guidelines apply to UCITS management companies and external alternative investment fund managers when offering individual portfolio management or investment advice as defined by the UCITS Directive and AIFMD, respectively.
Effective from 3 October 2023 onwards, both the Guidelines and this circular will come into force. The previous ESMA guidelines (ESMA35-43-1163_E) pertaining to this subject matter will no longer be applicable from the same date.