ESMA has published its guidelines on cross-selling practices under MiFID 2. Originally, ESMA, EBA and EIOPA had consulted jointly on draft guidelines, but have decided that ESMA should now issue guidelines specific to MiFID 2 in order to meet its deadline of providing the guidelines by 3 January 2016. The three authorities will report to the Commission on the issues they found and will suggest possible changes to laws to address them. The ESMA guidelines apply regardless of sales channel and include principles on:
- improving disclosures when different products are cross-sold with one another;
- requiring firms to provide investors with all relevant information in a timely and clear manner;
- addressing conflicts of interest arising from remuneration models; and
- improving client understanding on whether purchasing the individual products offered in a package is possible.
ESMA also provides examples to illustrate the guidelines. The guidelines apply from 3 January 2017. (Source:ESMA Publishes MiFID 2 Cross-Selling Guidelines)