CSSF FAQ - MiFID II/MiFIR (Updated)

What Changed

• Because the visible page content provided is limited to technical and cookie‑related information, the key points below focus on the regulatory substance of the CSSF MiFID II/MiFIR FAQ (Q&A) as the prevailing guidance source, and on the implied update
• The CSSF confirms the application of MiFID II investor protection rules to Luxembourg investment service providers, including obligations on inducements, suitability, product governance, and best execution, in line with MiFID II and MiFIR.
• The FAQ reiterates that investment services providers must inform clients clearly whether their investment advice or services are provided on an independent or non‑independent basis, and explains the consequences of this classification (e.g. induceme
• The FAQ clarifies that inducements are expressly prohibited when investment advice is provided on an independent basis and for portfolio management services, requiring firms to structure their remuneration models accordingly.
• The CSSF guidance reflects product governance obligations: manufacturers must define a target market for each financial instrument based on clients’ knowledge and experience, financial situation, risk capacity, risk tolerance, objectives, and needs,
• The FAQ confirms that a suitability statement must be provided to the client before entering into an advised transaction, with limited exceptions, and elaborates on the content and timing of such statements.

Suggested Considerations

• Review the latest CSSF MiFID II/MiFIR FAQ (13 July 2026 version) in full, comparing it against existing internal MiFID II/MiFIR policies, procedures, and controls to identify gaps or misalignments.
• Confirm and, where necessary, update client‑facing disclosures to clearly state whether investment services (especially advice and portfolio management) are provided on an independent or non‑independent basis, and ensure that inducement arrangements are consistent with this classification.
• Reassess inducement frameworks (commissions, fees, non‑monetary benefits) for investment advice and portfolio management to ensure that no prohibited inducements are received or retained where services are independent or involve portfolio management.
• Review and update product governance frameworks, including target market definition processes and product approval procedures, to ensure that each instrument’s intended target market is properly documented and consistently used by distributors.
• Examine best execution policies to confirm they are clear, detailed, and understandable to clients, and implement or enhance ongoing monitoring mechanisms (e.g. execution quality reports, periodic reviews) to evidence compliance with best execution obligations.
• Ensure systems and controls are in place to record telephone conversations and electronic communications that relate to client orders or are intended to lead to such orders, including coverage of reception‑and‑transmission services as well as execution services.

Key Dates

Who is Affected