ESMA: Review of the guidelines on MiFID II product governance requirements

ESMA is consulting on reviewed guidelines on MiFID II product governance guidelines. ESMA proposes to update the 2017 product governance guidelines. The main proposals in the draft guidelines relate to: 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 inpidual product; the determination of a compatible distribution strategy where a distributor considers that a more complex product can be distributed under non-advised sales; and the periodic review of products, including the application of the proportionality principle. Responses are required by 7 October 2022. Alongside the report, ESMA has also published the results of the 2021 common supervisory action on MiFID II product governance requirements.