ESMA: Final report on guidelines on MiFID II product governance guidelines

ESMA has published this report which contains a number of amendments to the guidelines.  These mainly concern: the specification of any sustainability-related objectives a product is compatible with; the practice of identifying a target market per cluster of products instead of per individual product; the determination of a compatible distribution strategy where a distributor considers that a more complex product can be distributed under non-advised sales; the periodic review of products, including the application of the proportionality principle.  The guidelines will be translated into the official languages of the EU which will trigger a two-month period during which national competent authorities must notify ESMA whether they comply or intend to comply with the Guidelines. The guidelines will apply two months after the date of the publication on ESMA’s website in all EU official languages.