30 April 2021

BDB: Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements

 General remarks

 Because of the existing regulatory restrictions, there are already client complaints
today (e.g. about PRIPPs because clients cannot buy the product (e.g. corporate bonds)
because there is no KID) and they are switching to less heavily regulated markets.

 Non-advised services should not be made more complicated.

 The appropriateness assessment relates to the “self-directed business”, in which the client
wishes to purchase an instrument of their own accord, unconnected to any advice or recommendation
from the advisor.

 For this reason, in particular all approaches, apart from the legally stipulated experience and
knowledge parameters, that amount to the filtering/a filtering effect of the financial instruments
and products within the context of the appropriateness assessment must be rejected.

 Appropriateness requirements should not be mixed with product governance requirements. These
stipulate filtering by various clusters and categories by the manufacturer and distributor. Under
the existing regime, distributors must already adjust the manufacturer’s target market if necessary
and may not take it over without checking. There is therefore no need for any more extensive
filtering in the context of the appropriateness assessment.

 We consider control requirements to be disproportionate in light of the existing suitability and appropriateness requirements.

 Sustainability factors and risks should not be taken into account in the assessment of knowledge
and experience in the context of non-advised business.

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