General regulation on necessary training for financial advisors and their assistants
Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice or information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm possess the necessary knowledge and competence to fulfill their obligations under Article 24 and this Article.
What about the necessary competence of investment advisers in risk-profiling?
A firm regularly monitors the suitability assessments provided by staff to assess whether the staff member has considered all aspects of the suitability requirements, against the specific details of the investment product.A firm regularly monitors that relevant staff demonstrate:•ability to ask appropriate questions to the client to understand her/his investmentobjectives, financial situation and knowledge and experience.•ability to explain the risks and rewards of a particular product or strategy to the client.•ability to compare selected products with regards to terms and risks, to be able toselect the product best suited to the client profile.
(…)Investment firms communicate publicly, in a way that is consistent and meaningful to clients,their criteria for demonstrating how staff comply with these guidelines.