CESR is consulting on how MiFID's appropriateness rules apply to specific types of financial instrument. The tests apply differently depending on whether an instrument is complex or non-complex. This consultation looks at classification of:
- money market instruments, bonds and other forms of securitised debt;
- UCITS and other collective investment undertakings; and
- other non-complex instruments and instruments not specifically addressed in MiFID.
The paper gives CESR's views on categorisation and includes a table showing which instruments will always be classed as either complex or non-complex, and areas where categorisation will depend on criteria in the MiFID Level 2 Directive. CESR asks over 30 questions and asks for responses by 17 July. It plans to issue a final paper in the autumn.