The European Parliament directive on Markets in Financial Instruments Directive (MiFID) took effect as of November 1, 2007, and is part of the EU’s plan to create a unified European market in financial instruments and services.
MiFID regulates the legal protection of investors and participants of investment services, stipulates general regulations for the provision of such services across the EU, and regulates the functioning of capital markets in Europe. In the Republic of Latvia, MiFID requirements are encased in the law on the Financial Instruments Market.
As of 3 January 2018, The Markets in Financial Instruments Regulation No 600/2014 (MiFIR) and the Markets in Financial Instruments Directive 2014/65/EU (MiFID), together - MiFID II, entered into application.
Main purpose of these new regulations is to re-enforce investor protection within the investment services sphere and to insure better stability and transparency of the European Union financial markets. MiFID II also brings additional measures on product governance, on the reinforcement of control and management functions and on the enhancement of financial supervision.
Following requirements of the MiFID, AS Expobank has elaborated and approved a package of documents that regulate the provision of brokerage services to its clients. We highly recommend reviewing them prior to the establishment of a trading relationship:
- Policy for “client classification when rendering investment services and ancillary investment services”
- Policy for “prevention of conflicts of interests”
- Policy for “order execution when rendering investment services”
- Information on investment service provider
- Description of risks related to financial instruments
- List of locations where clients’ orders are executed
One of MiFID’s requirements is to classify clients prior to the provision of investment services. The provider thereof should grant the client one of the following: private client, professional client, or eligible counterparty. The status determines the client legal protection level in use of investment services, including brokerage services. AS Expobank describes the client classification principles for the provision of brokerage services in its policy for “client classification when rendering investment services and accompanying investment services. According to the said policy, AS Expobank focuses on rendering investment services to professional clients and does not offer investment services to clients that do not have such status.
The following will answer questions regarding the application and delivery process of documents regulating our cooperation:
- Experts of the Brokerage Operations Division via +371 66155777, +7 495 2499024, and firstname.lastname@example.org.
- Your AS Expobank client service manager.