Protection of Investor Interests

Aiming to provide an even better protection of client interests and a greater market transparency, Directive 2004/39/EC on markets in financial instruments (commonly known as MIFID - Markets in Financial Instruments Directive), as well as range of related regulatory documents imposing new duties on investment services providers, will come into effect this 1st November.

Main benefits to clients from changes in operations of the bank

With the measures in place for conflict of interest prevention, the persons, whose main duties involve acting on behalf of clients, will be subject to tighter monitoring, as well as undue third-party influence on the course of rendering of services will be prevented or restricted. An even stricter internal control system will ensure compliance with the requirements concerning restrictions on personal transactions of employees.

The degree of protection for clients' financial investments will be higher: for instance, if the financial instruments selected by the client are transferred into a third-party holding, that party's competence and reputation, as well as the relevant country's legislation and market practice will be assessed. Such assessment will be repeated on an annual basis.

Prior to provision of investment services, the client will be provided with information about the bank, the exchange of information between the bank and the client, the essence of and risks attached to services, the cost of services and the protection of financial instruments and cash.

Now all clients will be subject to classification, depending on the level of protection of their interests in transactions in financial instruments or investment products: retail clients, professional clients and eligible counterparties.

The new procedure of execution of transactions, called Best Execution, will ensure the best possible execution result for clients. It applies to the execution of client orders and the individual management of client's financial instruments.

Further information:

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