On 10 August 2007 MiFID Connect issued a press release stating that the FSA had recognised its guideline on the application of the suitability and appropriateness requirements under the FSA rules implementing MiFID on suitability and appropriateness.
The guideline is not a definitive guide but is instead a non-exhaustive statement of the measures that firms subject to MiFID may adopt in complying with the suitability and appropriateness requirements under the FSA rules implementing MiFID. The guideline is structured as follows:
Section 1 - Introduction to suitability and appropriateness including an overview of the new obligations.
- Guideline to help member firms understand whether the suitability obligation or appropriateness obligation applies to them.
- Guideline to help firms understand the nature of the suitability obligation including how this will vary depending on the type of firm and the activities it carries out.
- Guideline to help firms understand whether the appropriateness obligation applies in respect of services other than investment advice and discretionary portfolio management and the nature of the appropriateness obligation including how this will vary depending upon the type of firm and the activities it carries on.
View MiFID Connect Guideline on suitability and appropriateness, (PDF 443KB) 10 August 2007