Central Bank publishes findings from inspection of investment firms’ compliance with appropriateness test for consumers

MiFID Firms

Date: 06 August 2020

The Central Bank of Ireland recently undertook a thematic inspection to review firms’ compliance with the “appropriateness’’ requirements set out in the European Union’s Markets in Financial Instruments Directive (MiFID II), and on 29 June published its findings. The inspection found evidence that a number of firms are not paying sufficient attention to the requirements, instead placing undue reliance upon 'box-ticking' to demonstrate compliance. The Central Bank is engaging directly with those firms where issues have arisen. The Central Bank has also sent a letter  to all MiFID firms, detailing the findings of the inspection together with recommendations to enhance their compliance arrangements, where relevant.