ESA Joint Committee · sfdr-95 Final

Do financial advisers, when providing MiFID II investment advice, have to comply with disclosure obligations in Article 6(2) of Regulation (EU) 2019/2088 in good time before the client is bound by any

Regulation
SFDR
Answered
2022-05-17
Answer provided by
European Commission
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Question

Do financial advisers, when providing MiFID II investment advice, have to comply with disclosure obligations in Article 6(2) of Regulation (EU) 2019/2088 in good time before the client is bound by any agreement for the provision of investment advice "as a whole" (i.e. not only limited to financial products as defined by Regulation (EU) 2019/2088, but also any financial instrument as defined by MiFID II), or for each single recommendation concerning a "financial product" as defined by Article 2(12) of Regulation (EU) 2019/2088?

Answer

Where investment firms and credit institutions provide investment advice, Article 6(3), points (h) and (i), of Regulation (EU) 2019/2088 requires them to include information referred to in Article 6(2), of that Regulation in accordance with Article 24(4) of Directive 2014/65/EU24. The definition of investment advice in Article 2, point (16), of Regulation (EU) 2019/2088 refers to investment advice as defined in Article 4(1), point (4), of Directive 2014/65/EU, namely ‘the provision of personal recommendations to a client, either upon its request or at the initiative of the investment firm, in respect of one or more transactions relating to financial instruments’. In consequence, investment advice is not restricted to investment advice about financial products as defined in Article 2, point (12), of Regulation (EU) 2019/2088.
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This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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