The European Securities and Markets Authority (ESMA) has published its Guidelines on Cross-Selling Practices under MiFID II (guidelines) to ensure investors are treated fairly when an investment 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;
• requiring firms to provide investors with all relevant information in a timely and clear manner;
• addressing conflicts of interest arising from remuneration models;
• improving client understanding on whether purchasing the individual products offered in a package is possible.
The guidelines apply from 3 January 2017.