EBA & ESMA Launch Consultation on Suitability Rules

Key developments include:

➡️ AML-CFT Linkages: Stronger guidance on identifying reasonable grounds to suspect money laundering or terrorist financing (ML/TF) risks in suitability assessments;

➡️ Third-Country Branches: Further clarification of requirements applicable to third-country branches;

➡️ Harmonised Submissions: Draft Regulatory Technical Standards (RTS) standardise the content of suitability questionnaires, CVs and internal assessments to ensure consistency across Member States; and

➡️ Consultation Deadline: 25 May 2026, with public hearings scheduled for 15 April 2026.

✅ Firms should assess suitability assessments, governance documentation and AML risk controls before the framework is finalised.