ESA Joint Committee · sfdr-97 Final

If a financial adviser only considers in its advisory process products which are not in scope of Regulation (EU) 2019/2088 (i.e. shares of listed companies, corporate bonds, etc.), should the financia

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

If a financial adviser only considers in its advisory process products which are not in scope of Regulation (EU) 2019/2088 (i.e. shares of listed companies, corporate bonds, etc.), should the financial adviser still comply with the obligations laid down in Articles 3, 4, 5, 6 and 13 of Regulation (EU) 2019/2088?

Answer

The definition of financial advisers in Article 2, point (11)(c) and (d), of Regulation (EU) 2019/2088 includes a credit institution or an investment firm which provides investment advice as defined in Article 2, point (16), of that Regulation. This definition 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 (see also question 2)25. This is why obligations laid down in Article 3(2), Article 4(5), point (b), Article 5, Article 6(2), first subparagraph, point (a), including potential effects of the second subparagraph of that Article 6(2), Article 12(2), Article 13(1), as well as Article 14(1) of Regulation (EU) 2019/2088 are not restricted to ‘financial products’.
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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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