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Esma publishes MiFID II cross-selling guidelines 

December 23, 2015

Funds Europe

The European financial regulator has published guidelines about how firms cross-sell products, in a bid to handle conflicts of interest and other issues.

The European Securities and Markets Authority (Esma) guidelines on cross-selling fall under the updated Markets in Financial Instruments Directive, or MiFID II, which comes into force in 2017.

According to Esma, the guidelines are there to ensure investors are treated fairly when a firm offers two or more financial products or services as part of a package.

The guidelines include principles on improving disclosures when different products are cross-sold with one another, and require firms to provide investors with clear, relevant information.

Also addressed are conflicts of interest that may arise from remuneration structures, and improving client understanding on whether purchasing the individual products offered in a package is possible. Read more

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