According to the CNMV, the investment advisory service consists in providing personalised recommendations to customers, whether at their request or at the company's initiative, on one or more operations related to financial instruments. Specifically, within the scope of private capital, retail investors who invest less than €100,000 must receive this advisory service, which we provide at Crescenta fully online.
The advisory service must be provided in accordance with the stock markets' conducts of business, especially regarding the assessment of the suitability of the financial instruments recommended to customers meeting their circumstances, knowledge and investment objectives; transparency and prior information related to the associated costs and expenses; and the requirement of each recommendation being accurate and provided in written format.
According to the CNMV, when advising customers, the entity must recommend the future investors those products that best suit their personal situation, for which it will have to analyse their knowledge and prior experience, as well as their investment objectives and financial situation.
The set of questions provided to obtain that information is known as the suitability test. If the investor decides to contract the product that has shown to be most suitable for them at that time, the entity must provide a copy, in written format or on a durable medium, of the description of how the recommendation meets the investor's characteristics and objectives. This recommendation must always be consistent with all the aspects related to the customer that have been assessed.
The details must provide information about their experience and knowledge, financial situation and investment objectives. The entities must request information for the sole purpose of knowing the customer better and thus helping them make the most appropriate decision.
In order to meet the MiFID regulations, investors need to complete two tests:
This obligation is set out by the Create and Grow Act, which reduces the investment limits in private capital from €100,000 to €10,000, provided that the investor with less than €100,000 has received the appropriate financial advice.
With the aim of providing an optimal experience, we have digitalised this service, creating an efficient and secure experience conceived to help investors make the best investment decisions.
This content is merely indicative. This content is merely financial training offered to you by Crescenta, without the intention of giving any type of personalised investment recommendation.
It is neither any type of advertising of financial instruments nor a recommendation or purchase offer.
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Crescenta
When you click on any underlined term, you can see a definition and example of each concept
When you click on any underlined term, you can see a definition and example of each concept
When you click on any underlined term, you can see a definition and example of each concept
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