Article 424

• 1

  If a financial undertaking provides an investment service other than the management of individual assets or another financial service designated by order in council without also providing advice, it shall obtain information about the knowledge and experience of the consumer or, in the case of a financial instrument or insurance, the client with regard to the relevant financial service or financial product, so that it can assess whether this service or product is suitable for the consumer or client.

• 2

  If an investment service as referred to in the first paragraph is provided in combination with another financial service or financial product, the assessment of suitability must examine whether the entire service or the combination of the financial service and the financial product is suitable.

• 3

  If, based on the information referred to in the first paragraph, the financial undertaking considers that the financial service is not suitable for the consumer or client, it shall warn them.

• 4

  If the consumer or client provides no or insufficient information about their knowledge and experience, the financial company will warn the consumer or client that it is therefore unable to assess whether the financial service is suitable for them.

• 5

  The first to fourth paragraphs do not apply to the provision of an investment service as referred to in part a or b of the definition of the provision of an investment service in Article 1:1, at the initiative of the client, insofar as this does not also involve an ancillary service as referred to in part b of the definition of ancillary service in Article 1:1, with regard to:

  • a.

    shares admitted to trading on a regulated market or a system comparable to a regulated market in a state that is not a member state recognized as equivalent by the European Commission in accordance with Article 25, paragraph 4, subparagraph a, second, third, and fourth subparagraphs, of the Markets in Financial Instruments Directive 2014 or a multilateral trading facility, insofar as they do not concern units in investment institutions or shares that include a derivative instrument;

  • b.

    instruments that are usually traded on the money market, with the exception of instruments that involve a derivative instrument or have a structure that makes it difficult for the client to understand the risk involved;

  • c.

    bonds or other forms of securitized debt admitted to trading on a regulated market, a system comparable to a regulated market in a non-Member State, or a multilateral trading facility, with the exception of those that involve a derivative instrument or have a structure that makes it difficult for the client to understand the risk involved;

  • d.

    rights to participate in an UCITS, with the exception of structured UCITS, as referred to in Article 36(1), second subparagraph, of Regulation (EU) No. 583/2010 of July 1, 2010, implementing Directive 2009/65/EC of the European Parliament and of the Council as regards key investor information and the conditions to be met when key investor information or the prospectus is provided in a durable medium other than paper or by means of a website (OJEU 2010, L 176);

  • e.

    structured deposits as referred to in Article 4, first paragraph, part 43, of the Markets in Financial Instruments Directive 2014, with the exception of deposits that make it difficult for the client to estimate the return risk or the costs of early exit;

  • f.

    other financial instruments to be designated by order in council, if the financial undertaking informs the client prior to providing the investment service that it has not assessed the suitability of the financial service or financial product for the client.

• 6

  Rules may be laid down by or pursuant to an order in council with regard to the content of the information referred to in the first paragraph, the manner in which it is obtained, the manner in which the suitability of the financial service or financial product for the consumer or client is assessed, and the content and form of the warning referred to in the third and fourth paragraphs.

• 7

  The warnings referred to in the third and fourth paragraphs, and the notification referred to in the fifth paragraph, may be given in a standardized form.