Knowledge Base

Which ESMA guidelines specify the practical arrangements for MiFID 2 product governance?

ESMA35-43-620 only

ESMA35-43-3448 only

ESMA35-43-620 then ESMA35-43-3448 in their revised version of August 2023

No ESMA guidelines specify these arrangements

What is one of the shortcomings identified by the AMF's 2021 SPOT inspection summary regarding product governance?

An overly strict definition of the target market

A passive approach by distributors towards manufacturers

An excess of complaints handled promptly

A complete absence of scenario testing

Under Article 9 of Delegated Directive 2017/593, what is one of the manufacturer's obligations regarding the definition of the target market?

Assess only the product's profitability

Identify the type of target client, the required knowledge, the financial situation, risk tolerance and objectives and needs

Define only the distribution strategy

Disregard client sustainability preferences

The distributor may broaden the target market defined by the manufacturer.

True

False

The distribution strategy must be consistent with the target market defined by the manufacturer.

True

False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Define the negative target market

Obtain product information from the manufacturer

Sufficiently understand the product to provide proper advice

Conduct periodic product reviews

Categories:

Manufacturer obligations

Distributor obligations

Criteria for defining the positive target market (ESMA 2023)

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According to the text, which standardised document facilitates information exchanges between manufacturers and distributors?

The ESMA annual report

The European MiFID Template developed by AMAFI

Delegated Directive 2017/593

AMF guidelines DOC-2018-04