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ID 1117. Ancillary services
Appropriateness test Back

Relevant provisions
General question on Directive 2004/39/EC

Does a Financial Institution have to perform appropriateness testing for those clients who are using only ancillary services (such as mergers and acquisitions)?

The provision of ancillary services alone does not require specific authorisation under MiFID but these services are subject to MiFID requirements when they are provided by MiFID authorised investment firms. While article 19(5) of MiFID 2004/39/EC requires investment firms to carry out an appropriateness test when providing investments services other than investment advice or portfolio management as listed under Annex I Section A of MiFID, this test does not apply to the provision of ancillary services such as mergers and acquisitions.

Submitted on 18/06/2012