Knowledge Base

← Client Relations

Questions

Which financial instruments are considered non-complex under MiFID II?

Shares listed on a regulated market
Convertible bonds
Structured products such as EMTN
Simple non-structured UCITS

Which article specifically governs the execution-only exemption for non-complex products?

Article 25(1) of MiFID II
Article 25(3) of MiFID II
Article 25(4) of MiFID II
Article L.533-13 I of the Code monétaire et financier

What must a clear warning issued during an appropriateness assessment deemed inappropriate contain?

A detailed analysis of the product's risks
A confirmation that the product is suitable for the client's profile
A warning that the product is not appropriate with justification
A similar alternative offer

What is the main purpose of the appropriateness assessment under MiFID II?

To verify that the product is profitable for the client
To ensure the client has sufficient capital
To verify that the financial instrument matches the client's knowledge and experience
To guarantee that the product is risk-free

The appropriateness test requires the service provider to refrain from transmitting the order if the product is considered inappropriate.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Shares listed on a regulated market without risky clauses
Futures
Convertible bonds
Simple non-structured UCITS
Categories:

Mandatory assessment

Possible exemption under conditions

Financial products classified as complex under MiFID II

Click to see answer

A simple non-structured UCITS can be considered complex if it incorporates a clause that fundamentally modifies its risk profile.

True
False