What is MiFID?

The Member states of the European Union have, following the Lisbon summit meeting of 2004, committed to creating more effective and unified financial markets. The 2004/39 Ruling named "Markets in Financial Instruments Directive", or MiFID which is the usual abbreviation, is the result of this commitment. Greece has adopted the ruling following law 3606/17.08.2007, while the law is officially in effect from 1st November 2007.

What is the scope of MiFID and what are the benefits for clients?

		European investors will be able to have access to a broader range of financial products and low cost financial services.
		Investors, via European brokers and investment services companies, will have access to markets of other European member states within a harmonized common institutional framework. They will able to make cross-border transactions easily, in a more competitive business environment.
		Costs for-intra European cross-border transactions should be reduced, while the improved access to markets will benefit wealth management across European member states.
		Transparency and protection for small investors will be increased (best execution).
		Competition will be boosted and internal conflicts of interest will be avoided.

What are the changes, following MiFID and how will they affect me?

The changes for you as clients of our Bank are not material as you know that you enjoy already many of the new regulation of MiFID.

		Retail Client: Can be a legal entity or an individual who has not been included in the category of professional investor or eligible counterparty. The retail investor will enjoy the highest possible investor protection.
		Professional investor: Is a client who has the experience, knowledge and expertise to make his/her own investment decisions and to accept the risks to which he/she is exposed (usually a Investment Services Company, but also private commodity and futures traders).
		Eligible Counterparty: Institutional Investors such as Banks, Insurance companies, Portfolio Management Companies, Central Banks etc. who do not want a high level of protection since they have increased knowledge, experience.

Can I ask to change my classification from, for example, a retail client to a professional?

Yes, the bank will study your written request and provided that certain criteria based on MiFID are fulfilled, you will receive an answer in writing for the approval or rejection of your request. In every instance, you should know that a change of category such as this will deprive you of the highest level of protection, which is being offered to you.

Information to clients

A client should receive confirmation of the execution of his order (but not an order arising from the discretionary management of a portfolio) in good time, and certainly at the latest, by the first business day following the execution of the order. Our bank according to the legal framework regulating transactions in financial instruments after the implementation of MiFID, holding high standards of professionalism and transparency, as client confirmations are sent out by fax, e-mail or mail as soon as possible and no later than the first business day following the execution of the order (or, if the confirmation is received by the investment firm from a third party). The bank also, sends clients’ periodicals statements by mail or e-mail as follows:

→ Once a year sends a statement as regards the financial instruments or funds held in investment account.

→ Once a month sends a detailed statement as regards the transactions and the activity of the margin account in money and Assets of the Security Portfolio during the previous calendar month, as well as the valuation of the Security Portfolio and the amount of Credit on the last working day of the previous calendar month.

→ Once every three months sends a statement as regards deposit balances, in compliance with Bank of Greece Governor’s Act 2501/2002.

Assessing client Appropriateness and Suitability

A questionnaire is established via which sufficient information is collected for each customer, in order to evaluate the customer in total, in the frame of “Know your customer” principle. Information regarding customer’s knowledge and experience in specific investment services and products is evaluated in order to assess whether the products or the services, selected by the investor, are appropriate for him (evaluation of appropriateness). In case the customer requests the service of portfolio management or investment advice, additional information, regarding his financial status and his investment objectives, is evaluated, in order to examine whether the specific investment services and products he requests, are suitable for him (evaluation of suitability).

You must have installed Adobe Reader