Investor protection in sales · Question 9 of 12
Which statements about the review obligations of investment firms under MiFID II are correct?
3 answers are correct. Medium
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Answer
- A In execution-only business with non-complex products at the client's initiative, no check is required
- D In non-advised business, appropriateness must be checked for complex products
- E For investment advice and portfolio management, suitability must be checked
Explanation
Suitability covers knowledge, financial situation and objectives, appropriateness only knowledge and experience. In pure execution-only business, no such check takes place, and the client is informed of this. Which check applies therefore depends on the service and the product.