MiFID2: ESMA publishes product governance guidelines

13/06/2017 | Clifford Chance

ESMA has published final guidelines on product governance requirements for the manufacturers and distributors of financial products.


ESMA decided to develop the guidelines, which mainly address the target market assessment, in order to ensure that firms which manufacture and distribute financial instruments act in their clients' best interests during all stages of the life-cycle of products or services. They are intended to ensure a consistent and harmonised implementation and application of the requirements under MiFID2. ESMA has made certain amendments following feedback received to its consultation on draft guidelines, including in relation to portfolio diversification.


ESMA will translate the final guidelines into the official EU languages, following which national competent authorities (NCAs) will have two months to confirm whether they comply or intend to comply with the guidelines.