Requirement (MIFID)
Article 52 Investment advice
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
For the purposes of the definition of ‘investment advice’ in
Article 4(1)(4) of Directive 2004/39/EC, a personal recommendation
is a recommendation that is made to a person in his
capacity as an investor or potential investor, or in his capacity as
an agent for an investor or potential investor.
That recommendation must be presented as suitable for that
person, or must be based on a consideration of the
circumstances of that person, and must constitute a recommendation
to take one of the following sets of steps:
(a) to buy, sell, subscribe for, exchange, redeem, hold or
underwrite a particular financial instrument;
(b) to exercise or not to exercise any right conferred by a
particular financial instrument to buy, sell, subscribe for,
exchange, or redeem a financial instrument.
A recommendation is not a personal recommendation if it is
issued exclusively through distribution channels or to the public.
Comment
Applies to Article 4(1)(4) of Directive 2004/39/EC