Subsection 1: Provisions common to investment services providers other than portfolio management companies

I.-In order to provide the services mentioned in 4 or 5 of Article L. 321-1, investment service providers other than portfolio management companies shall obtain the necessary information concerning the investment knowledge and experience of their clients, in particular their potential clients, in relation to the specific type of financial instrument or service, their financial situation, including their capacity to incur losses, and their investment objectives, including their risk tolerance, so as to be able to recommend to them the appropriate investment services and financial instruments adapted to their risk tolerance and capacity to incur losses.

When the provision of the investment service referred to in Article L. 321-1.5 leads to the recommendation of a bundled offer within the meaning of Article L. 533-12-1, providers other than portfolio management companies shall ensure that the bundled offer as a whole is appropriate.

Ia - When they provide the services mentioned in 4 or 5 of Article L. 321-1 which involve a change of financial instruments, investment services providers other than portfolio management companies obtain the necessary information on the client's investment and analyse the costs and benefits of the change of financial instruments. When they provide the service referred to in Article L. 321-1.5, these same providers shall indicate to the client whether or not the benefits associated with a change of financial instruments outweigh the costs associated with such a change.

These obligations do not apply to the provision of services to professional clients, unless they request otherwise under conditions laid down by decree.

For the purposes of this article, a change in financial instruments is either the sale of such an instrument followed by the purchase of another instrument, or the exercise of the right to make a change to an existing financial instrument.

II - With a view to providing a service other than those mentioned in I, investment service providers other than portfolio management companies shall ask their clients, including potential clients, for information on their investment knowledge and experience in relation to the specific type of financial instrument or service offered or requested, in order to be able to determine whether the service or financial instrument is appropriate.

Where a bundled offer of services or products within the meaning of Article L. 533-12-1 is envisaged, the assessment shall cover the appropriateness of the bundled offer as a whole.

When investment service providers other than portfolio management companies consider, on the basis of the information provided, that the service or financial instrument is not suitable for clients, particularly potential clients, they shall warn them. This warning may be given in a standardised form in accordance with the conditions laid down in the General Regulation of the Autorité des marchés financiers .

If clients, in particular potential clients, do not provide the information referred to in the first paragraph, or if the information provided is insufficient, providers shall warn them that they are not in a position to determine whether the service or financial instrument envisaged is suitable for them. This warning may be provided in a standardised form in accordance with the conditions laid down in the General Regulation of the Autorité des marchés financiers.

III - Investment services providers other than portfolio management companies may provide the services referred to in 1 or 2 of Article L. 321-1 with or without related services, excluding the granting of credit or loans referred to in 2 of Article L. 321-2 to which the existing limits on loans, current accounts and overdrafts for clients do not apply, without applying the provisions of II of this Article, under the following conditions:

1° The service relates to non-complex financial instruments defined by decree ;

2° The service is provided at the initiative of the customer, in particular the potential customer;

3° The service provider has clearly informed the customer, in particular the potential customer, in advance that he is not required to assess the appropriateness of the service or the financial instrument and that he does not benefit from the corresponding protection of the relevant rules of good conduct. This warning may be transmitted in a standardised form;

4° The service provider has complied with 3° of I or II of Article L. 533-10.