ESMA Launches Supervisory Action On MiFID II Suitability Rules

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is launching a common supervisory action (CSA) with national competent authorities on the application of MiFID II suitability rules across the EU, to be conducted during 2020. The CSA will focus on the application of the MiFID II requirements on the assessment of suitability. The regulator will evaluate the progress made by intermediaries in the application of the requirement, and analyse whether, and how, the costs of investment products are taken into account by firms when recommending an investment product to a client.