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ESMA Reminds Firms Of Responsibilities When Selling Bail-In Securities

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The European Securities and Markets Authority (ESMA) has today published a Statement reminding banks and investment firms (‘firms’) of their responsibility to act in their clients’ best interests when selling bail-in-able financial instruments. New Banking Recovery and Resolution Directive (BRRD) rules in force since January 2016 mean firms are likely to issue a significant amount of potentially loss-bearing instruments to fulfil their obligations and ESMA is concerned investors – in particular retail investors - are unaware of the risks they may face when buying these instruments.

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