European Brokerage · glossary
A check of a client’s knowledge and experience of a complex product, before a first order in it. Thalvia runs it in the app before a first leveraged note. A client who fails may not buy the notes at all, although the law asks only for a warning. Clause 5.2 · Chapter 4 · see Complex instrument
Explained in Chapter 4, Opening an Account: Execution-Only, Appropriateness and Advice, of European Brokerage.
Article 25(3) of MiFID II requires an appropriateness test first. The firm asks about the client’s knowledge and experience of that kind of product, and nothing else. ESMA, the EU’s markets supervisor, set out in its 2022 guidelines how firms should run the test.Read Chapter 4, Opening an Account: Execution-Only, Appropriateness and Advice →
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