The Cyprus Securities and Exchange Commission (CySEC) has informed the Regulated Entities that the European Securities and Markets Authority (ESMA) has published its Guidelines on Cross Selling Practices under MiFID II to ensure investors are treated fairly when a firm offers two or more financial products or services as part of a package.
The Guidelines include principles on:
- improving disclosures when different products are cross-sold with one another;
- requiring firms to provide investors with all relevant information in a timely and clear manner;
- addressing conflicts of interest arising from remuneration models; and
- improving client understanding on whether purchasing the individual products offered in a package is possible.
The CySEC adopts the Guidelines and they will apply from 3 January 2018.