EUROPEAN UNION: ESMA Publishes Translations of its Guidelines for the Assessment of Knowledge and Competence

Wednesday March 23 2016

The European Securities and Markets Authority (ESMA) has published translations of its ‘Guidelines for the assessment of knowledge and competence’ (“the Guidelines”).

The Guidelines apply in relation to the provision of investment services and activities detailed in Annex I to the Markets in Financial Instruments Directive of 15^th May 2014 (“MiFID II”).

The Guidelines require firms to ensure that staff understand the key characteristics, risk and features of investment products available through their firm, including the total amount of costs and charges to be incurred by the client in the context of transactions. Firms must also ensure that staff understand how financial markets function and how they affect the value and pricing of investment products on which they provide information to clients.

Organisational requirements for assessment, maintenance and updating of knowledge and competence are also detailed in the Guidelines.

The Guidelines apply to competent authorities and firms and will come into force on 3^rd January 2017.

Click on the link above for further details.