ELTIF Fond
en
Menu
Glossary

Suitability assessment

A suitability assessment is the MiFID II check of whether an investment fits a client's knowledge, experience, finances and objectives. An ELTIF may be offered to a retail investor only after it.

1 min read Updated Expert review not yet completed

Short answerA suitability assessment is the MiFID II check of whether an investment fits a client's knowledge, experience, finances and objectives. An ELTIF may be offered to a retail investor only after it.

A suitability assessment is the check a distributor or adviser carries out under Article 25(2) of MiFID II to decide whether an investment fits a client's knowledge, experience, financial situation and investment objectives.

Why it matters

Under ELTIF 2.0, an ELTIF may be offered to a retail investor only after this assessment and only if the investor receives a statement on suitability. If the assessment finds that the ELTIF is not suitable, no investment advice is given and the investor still wishes to proceed, the investor must give explicit consent confirming an understanding of the risks.

What to watch for

The result depends on the answers you give, so answer accurately, including about your need for access to your money. A positive result is not a promise of performance. See ELTIF for retail investors and the checklist before you decide.

Primary sources

General information. Not investment advice or a suitability assessment.

Related content

Black and white aerial view of a square in a historic centre

Learn8 min read

ELTIF for retail investors: rules, protections and steps

Since ELTIF 2.0, retail investors can buy ELTIFs without the former EUR 10,000 minimum and 10 % portfolio limit. The seller must carry out a MiFID II suitability assessment, give a suitability statement and a written alert on long life and matching. It suits only long-term investors.
Pen resting on a lined notebook

Articles9 min read

What to check before investing in an ELTIF: 12-point checklist

Before investing in an ELTIF, read the KID, prospectus and statute, confirm the end date and redemption rules, check borrowing, concentration, costs and the manager, test your horizon and reserves, compare alternatives and consider independent advice.
Stack of black binders with documents on a desk

Learn8 min read

ELTIF documents: what to read before you invest

Before investing in an ELTIF, read the fund rules or statute, the prospectus, the KID, the latest annual report, your suitability statement and the written alert required for retail investors. Each document answers different questions, so read them together and ask the seller for anything missing.