The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is consulting on reviewed guidelines on MiFID II product governance guidelines. ESMA proposes updating the 2017 product governance guidelines following several recent regulatory and supervisory developments, including the outcome of the 2021 common supervisory action (CSA) on product governance.
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 individual product (“clustering approach”);…