ESMA targets investment firms with MiFID II cross-selling guidance

Must identify risks and costs of bundled products

Investment firms must clearly display the estimated price of separate products ahead of purchase when cross-selling under MiFID II, the European Securities & Markets Authority (ESMA) has ruled.

In its final guidelines on cross-selling practices under the Markets in Financial Instruments Directive II (MiFID II), ESMA - which is responsible for turning MiFID II into legislation - added the information firms use to make estimations must be in accordance with European Union law. The risks of the separate and combined products must also be clearly laid out to customers, in a way which is not misleading. Under MiFID II, cross-selling means the offering of an investment service together with another service or product as part of a package, or as a condition for the same agreement o...