Cyprus: Suitability of Client Investments

Refreshed November 2024 | CPD time: 45 Minutes

The regulator has been focused on the suitability of investments for retail customers/clients for many years. As a result, it is at the forefront of the Senior Management of all authorised firms and subsequently its advisers who recommend investment products to retail customers/clients. This module provides an understanding of how to assess the suitability of an investment for a retail customer/client, how to assess the customer’s/client’s risk appetite and carry out risk profiling, along with identifying suitable questions and answers in order to gather accurate customer/client information. The module then combines these research methods to guide the adviser on how to select suitable investments for the retail customer/client, as well as providing guidance on reports and record keeping. The Cyprus Securities & Exchange Commission (CySEC) rules on suitability are specified in Article 26 Part 2, Provisions to ensure investor protection, of the MiFID II (Amended) Law of 2023, (“Law which provides for the provision of investment services, the exercise of investment activities, the operation of regulated markets and other related matters”).