MiFID II – the Directive
The aim of MiFID II (entry into force: 3 January 2018) is the development of a single market for financial services in Europe, in which transparency and investor protection are guaranteed.
It includes various provisions that, in view of the obligation to act in the customer’s best interest, aim to ensure that investors receive correct information, address the potential conflicts of interest among parties and require adequate profiling of savers.
Below we list some of the main innovations introduced by MiFID II in relation to the provision of investment services.
MiFID II introduces significant changes in this area, including the new concept of advice on an independent basis. Investment firms are thus required to inform clients:
- whether or not the advice is provided on an independent basis;
- whether the advice is based on a broad or on a more restricted analysis of different types of financial instruments;
- whether they will provide the client with a periodic assessment of the suitability of the financial instruments recommended.
The fundamental principle lying at the basis of the service of investment advice remains investor protection, to be achieved through an assessment of appropriateness. This assessment is based above all on information collected about the client regarding:
- his/her knowledge and experience in the investment field relevant to the specific type of product or service
- the client’s financial situation, including his/her ability to bear losses;
- his/her investment objectives including his risk tolerance.
MiFID II introduces a series of organisational requirements regarding the relationship between manufacturers and distributors of financial instruments. Manufacturers are required to define and apply a process for the approval of each financial instrument before it is marketed or distributed to clients. For their own part, distributors are required to contribute to the implementation of appropriate distribution strategies based on the characteristics of the target market.
For further information you can view the following documents:
- Pricing policy and internal rules for the negotiation and issuance of POs issued by the bank;
- Product governance;
- Policy Market Abuse;
- Policy Strategy Execution Orders relativi allegati;
- Customer Classification Policy;
- Conflicts of interest management policy related annexes
- Staff knowledge and skills;
- Incentive detection and management policy;
- Policy for the management of personal operations;
- Disclosure of the obligations of intermediaries to conduct themselves vis-à-vis policyholders;
- Pre-contractual information;
- s171 REGOLAM TIER 2 TF 5%
- s175 REGOLAM TIER 2 8 ANNI TF 5%;
- s176 REGOLAM TIER 2 10 ANNI TF 6%;
- s177 REGOLAM TIER 2 10 A con eventuale rimborso anticipato;
- s178 REGOLAM TIER 2 TF 5% 6 ANNI 06.2015
With reference to the period 1 January – 31 December 2018, we have published a document that specifies, for each class of financial instruments:
- the top five execution venues where the bank directly executes client orders;
- the top five investment firms (brokers) used by the bank..
The trading volumes and number of orders executed, expressed as a percentage of the total for each class, are reported for every venue/broker. In addition to the quantitative information there is a qualitative section which includes qualitative specifications relating to compliance with the established criteria for ensuring best execution, for both retail customers and professional clients.
- Report-Primi.5_Broker 2020
- TOP5 VENUE_FINANZ.
REPORT ON THE QUALITY OF EXECUTION OF FINANCIAL TRANSACTIONS
The documents contained in this section have been drawn up in accordance with Article 27 (3) of Directive 2014/65/EU and Commission Delegated Regulation (EU) 2017/575 and published in accordance with the provisions of paragraph 1.5 – “Monitoring and verification of the quality and correct application of the order execution and transmission strategy” – of the Execution Policy currently in force.
The reports are used for the purpose of monitoring and verifying the quality of execution offered in relation to orders for financial instruments executed by the bank on own account.
The reports are produced for each financial instrument and each trading day. They are published on a quarterly basis and refer to the data for the previous quarter. They are divided into the following tables:
Any clarifications and in-depth analysis at the SOLUTION BANK branches.