• Service: Financial Services, Regulatory Services
  • Industry: Banking
  • Type: Regulatory update
  • Date: 12/17/2013

Suitability - Challenges for Retail Banking 

The EU plans to revise the MiFID to increase requirements for market transparency and investor protection. The protection of investors is also of great importance in the Swiss Financial Market Supervision Act, as according to the FINMA’s market report, there will be a new Code of Conduct for financial service providers, regulations for client information as well as product documentation in this.
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The MiFID and the FINMA market report tackle the protection of investors with the appropriateness and suitability of services and products, taking into account the individual client's experience, financial circumstances, risk disposition and investment goals. Appropriateness and suitability are key topics here. Suitability can best be illustrated with a three pillar model and includes the key terms "cross border", "client suitability" and "product suitability". The duty to implement the suitability requirements also applies to Swiss banks. Due to project experiences with introducing the suitability concept at Swiss banks, our professionals are able to share valuable knowledge with our clients and optimally advise them in regard to the topics in the MiFID and the FINMA market report.