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MiFID II cross-selling final report

ESMA has published a final report containing guidelines on cross-selling practices under MiFID II. The final report follows the 22 December 2014 consultation paper (JC/CP.2014/05) issued by the Joint Committee of the European Supervisory Authorities. Article 24(11) MiFID II requires ESMA, in cooperation with the EBA and EIOPA, to create guidelines for the supervision and assessment of cross-selling. In order to comply with the still officially undelayed timetable, the report confines itself only to cross-selling as defined by MiFID II- the offering of an investment service  together with another service or product as part of a package or as a condition for the same agreement or package. It applies to the following financial market participants: investment firms, credit institutions providing investment services, management companies and external AIFMs providing services under Article 6(3) of the UCITS directive and Article 6(4) of the AIFMD. ESMA acknowledges that other EU legislation may also apply to products or services that are cross-sold. The guidelines are principles and practical examples aimed at assisting NCAs to:

  • Improve disclosure content on price, cost and other features when different products are packaged together
  • Require that all relevant information is communicated in a timely and prominent manner
  • Improve client understanding as to the possibility of purchasing products individually
  • Addressing training and remuneration
  • Clarifying the application of any post-sale cancellation rights attached to any of the the products

As usual, the final report contains feedback from the precedent consultation and a supportive cost/benefit analysis. The final text of the report is contained in Annex 5 and will apply from 3 January 2017 (subject to any overall delay).

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