ESMA Updates Portfolio Management and Robo-Advisor Guidelines

[kreslik.news]

The European Securities and Markets Authority (ESMA) has published a set of guidelines for portfolio management and investment advisory financial firms. Specifically, the updated recommendations provide clarification on robo-advisors and the “suitability assessment” in relation to MiFID II.

A suitability assessment refers to the process of collecting information about a client and then, based on that knowledge, selecting appropriate investment products. This is a typical process for portfolio management and investment advice firms.

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According to the guidelines, particularly when dealing with retail investors, firms should clearly inform their clients of this ... (read more)