The Markets in Financial Instruments Directive (2014/65/EU) (“MiFID II”) is setting out a new institutional framework of operation for the harmonization of markets in financial instruments in Europe.
The Markets in Financial Instruments Directive (MiFID) legislative framework consists of an amending Directive (MiFID II) and a new regulation, the Markets in Financial Instruments Regulation (MiFIR). The new legislation has been transposed into Cyprus national law by Law 87(I)/2017 which provides for the provision of investment services, the exercise of investment activities, the operation of regulated markets and other related matters and applies from 3rd of January 2018.
MiFID II sets out the way in which investment firms should conduct their business and the way that they needed to be organized in order to operate correctly. It also covers issues such as the authorisation requirements for regulated financial markets, requirements to report to regulators to avoid market abuse, transparency in buying and selling shares, as well as setting out rules to cover the requirements for financial instruments to be traded.
MiFID II is designed to take account of changes that have happened within the trading environment since MiFID was introduced. In addition, it aims to improve the functioning of financial markets with a view to making them more efficient, more resilient and more transparent in the aftermath of the 2009 global financial crisis.
MiFID II Directive applies to whoever carries out transactions in investment products or receives investment services. It also applies to companies that provide investment services or manufacture and distribute investment products (Banks, Asset Management Firms etc.)
The implementation of MiFID II will have a significant impact on Hellenic Bank Group and how we do business and interact with our clients. MiFID II touches on each key stage of our relationship with you as a client of Hellenic Bank Group, and will impact upon the following key areas:
- Best Execution
- Order Handling
- Client Categorisation
- Terms of Business and Client Agreements
- Suitability and Appropriateness
- Client notifications
- Pre and Post Trade Transparency
- Transaction Reporting
- Safeguarding Client Financial Instruments and Funds; and
- Conflicts of Interest.
Whilst the changes being brought in by this EU directive are significant, we wish to make the transition to the post-MiFID II landscape as smooth as possible for our existing clients.