1. Member States shall require that, when providing investment
services and/or, where appropriate, ancillary services to clients, an
investment firm act honestly, fairly and professionally in accordance
with the best interests of its clients and comply, in particular, with the
principles set out in paragraphs 2 to 8.
2. All information, including marketing communications, addressed
by the investment firm to clients or potential clients shall be fair, clear
and not misleading. Marketing communications shall be clearly identifiable
as such.
3. Appropriate information shall be provided in a comprehensible
form to clients or potential clients about:
— the investment firm and its services,
— financial instruments and proposed investment strategies; this should
include appropriate guidance on and warnings of the risks associated
with investments in those instruments or in respect of particular
investment strategies,
— execution venues, and
— costs and associated charges
so that they are reasonably able to understand the nature and risks of the
investment service and of the specific type of financial instrument that is
being offered and, consequently, to take investment decisions on an
informed basis. This information may be provided in a standardised
format.