The CNMV informs the ESMA that it already applies the remuneration and suitability requirements of MiFID II


The National Securities Market Commission (CNMV) has notified the European Securities and Markets Authority (ESMA) that it already complies with the guidelines relating to certain aspects of suitability and remuneration of MiFID II and that, for Therefore, it takes them into account in its supervision actions.

Regarding suitability, the guidelines indicate that when entities collect information on customer sustainability preferences, they must consider all aspects included in the definition of sustainability preference in the applicable regulation.

Likewise, the suitability assessment in relation to sustainability preferences should be carried out once the suitability has been assessed according to the rest of the factors. In such a case, entities may not recommend a product to a customer that does not fit their sustainability preferences.

The CNMV will also assess that the entities’ staff have the necessary knowledge and skills regarding the factors used to assess sustainability preferences and be able to explain them to customers in non-technical language.

With regard to remuneration, the objective of the ESMA guidelines already applied by the CNMV is to align the incentives of the remuneration systems for employees or agents with the interests of clients.

In this way, the weight of qualitative criteria should not be negligible and should not be used to indirectly reintroduce quantitative commercial criteria. In addition, entities must allow the application of a flexible variable remuneration policy that includes the possibility that this remuneration is zero when qualitative objectives are not met.

Another aspect regarding risks is that the new regulations indicate that entities will avoid establishing excessively complicated outsourcing or distribution structures when the remuneration policies or practices applicable to such structures make it difficult for the company to control compliance risks. of the policies and procedures regarding conflicts of interest and rules of conduct.