Article 55 of the Delegated Regulation requires the delivery of a suitability report prior to any advised transaction. This report must explain how the recommendation meets the client's preferences and profile.

Article 54 of Delegated Regulation 2017/565 details the information to be collected for the suitability test, including knowledge and experience, financial situation and investment objectives of the client.

Article 24 of Directive 2014/65/EU sets out the general principles for client information. This includes transparency and communication obligations for essential information so that clients can make informed decisions.

The three complementary pillars of the suitability test are: knowledge and experience, financial situation, and investment objectives. These pillars are used to assess whether a service or product is suitable for the client's profile.

The appropriateness test, as provided for in Article 56 of the Delegated Regulation, is limited to collecting information on the client's knowledge and experience, without incorporating the financial situation or investment objectives.

Since August 2022, Delegated Regulation 2021/1253 has required the collection of client sustainability preferences to tailor advice to expectations in terms of social and environmental responsibility.

In accordance with Article L. 533-16 of the CMF, records must be kept for a minimum of five years. This ensures traceability and compliance of the advice provided.

Independent advice requires a diversified assessment of financial instruments and the prohibition of inducements, whereas non-independent advice allows the receipt of inducements subject to certain conditions.