What is the Markets in Financial Instruments Directive MiFID?
Financial services provided in the European Union are regulated by EU directives.
The Markets in Financial Instruments Directive is one of the measures of establishing a single European financial market and was transposed to all EU member states` legislation by November 1, 2007.
The main objective of the directive is to harmonise investment services provided in the European Union and to increase protection of investors.
Nordea has always set high consumer protection and transparency standards for itself, which MiFiD will help to enhance as it creates equal rules and requirements for banks and investors across the European Union.
- Improve transparency of investment services;
- Guarantee the highest level of customer protection;
- Define standards for performance of customer instructions;
- Enable investment companies to operate across the European Union on the basis of their homeland license (so-called “EU passport“);
- Harmonise investment companies` organisational requirements.
How does the directive affect you?
In order to determine the investor protection level that applies to you, Nordea is obliged to categorise you in one of three customer classification categories according to the Markets in Financial Instruments Directive. Nordea is obliged to inform you of your classification.
You can fill in the MiFiD risk assessment questionnaire in our online bank or at a bank office.
Suitability of services provided to you
Nordea is obliged to acquire additional information from you about your investment know-how and experience (especially regarding the financial instruments you are investing in) and to find out your financial situation and investment objective.
The information we receive from you will only be used to make sure that the products and services the bank offers you suit and are appropriate for you.
Advantages to customers
- Greater transparency of investment services offered to you primarily due to clearer guidelines and documentation.
- Higher quality consultation service as we will focus more on the specific risks of the financial instruments offered to you than before.
- Better protection of your interests as the Nordea products and services offered to you correspond to your risk profile and classification and Nordea makes sure rules regarding performance of customer instructions are followed.