ESMA Issues Guidelines on Reverse Solicitation
By Bilal Jafar
January 13, 2021, Finance Magnates
The European Securities and Markets Authority (ESMA) addressed the issues related to a few questionable operations by the companies around reverse solicitation in the region. The regulatory authority mentioned that the services provided by a third-country firm to the clients in the EU region “should not be deemed as a service provided at the own exclusive initiative of the client.”
According to the official announcement, ESMA warned that investors may lose protection under the EU rules if they use services of an investment service provider that is not authorized under EU and Member States’ law.
