EU regs link client suitability to job

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European legislators have proposed changes to client suitability requirements which imply an investor's suitability to, and knowledge of, financial services products can be deduced by their educational background or profession.

The European Securities Commission, which is a committee made up of ministers and officials reporting to the European Parliament, has suggested a series of proposals relating to the Markets in Financial Instruments Directive (MiFiD) which, among other things, sets down European conduct of business rules and is designed to clarify the definition of investment advice. In the latest working document proposals for MiFID, which was finalised on 7th July but only issued earlier this week, the European Securities Committee proposes changes should be made to the assessment of client suitability ...

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